[video] Quick Take: Meet Your Needs in Your Portfolio
NEW YORK (TheStreet) -- We're five years removed from the financial collapse of 2008, but it has altered the investment decisions for many. TheStreet's Brittany Umar is with Mark Hamilton, chief investment officer of asset allocation at Oppenheimer Funds, discussing portfolio strategies.
The common rule calls for investors to subtract their age from the number 100, and allocate that percentage to stocks. So for example, if an investor is 40, he would allocate 60% of his portfolio to equities.
But Hamilton suggested that investors first need to identify their longer-term goals and needs from their portfolio.
Once they have an idea about what their needs will be, then they can begin finding the right tools for correctly allocating their assets.For instance, if the investor is looking for growth, it is usually best to be in equities, while bonds are generally sought after for income, he said. However, "hybrid" allocations look to achieve both growth and income. Hamilton suggested master limited partnerships or real estate investment trusts for that. But there's one component that's been severely altered: Portfolio protection. In the past, investors who wanted safety could simply own government bonds. But according to Hamilton, once the financial crisis hit, many investors fled to Treasuries, causing yields to plunge and driving down returns. He concluded that the current environment presents investors and managers with the challenge to find new and innovative ways to protect their assets. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV