This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Being in the Right Asset Class at the Right Time

All the way up from S&P 500 reading of 666 in March of 2009 to a current reading of around 1600. The bears have been wrong.

I have owned U.S. stocks with a heavy weighting towards small- and mid-caps since the beginning of the year. That has helped to propel my client's portfolios to some very hefty returns in 2013.

As you can tell, I am not a practitioner of Modern Portfolio Theory. Nor am I an asset allocator. I don't believe in hedging just to be hedging. There has to be a better way.

While asset allocators will be busy rebalancing portfolios towards bonds and away from stock in the coming weeks, I will instead be going where my asset class rankings tell me to go.

With just one month left in 2013, here is where I currently have the asset classes ranked:

Data from Best Stocks Now App

The asset classes are ranked along with 3,700 other investments (mostly individual stocks), but are isolated when compared against each other.

This is still an environment that favors U.S. stocks. This trend has been in place for over one year. This trend will eventually end, but for now the above eight asset classes are still the best place to be.

Nobody knows how long this trend will stay in place, but it ain't over til' it's over. All we can do is take it a day at a time, an asset class at a time, a sector at a time, a mutual fund at a time, and stock at a time.

It is just as important to know the worst asset classes at any given point in time. Here is your current list:

Data from Best Stocks Now App

These same trends have also been in place all year long. Gold was one of the worst places to be at the start of the year and it still is. I have had no exposure to gold and have avoided a 25% loss by avoiding this asset class.

Being short the market is still one of the worst places to be. What about being a contrarian at this point in time? Let's let the asset classes rankings tell us when it is time to move. That is always much better than trying to guess.

Bonds and interest rate-sensitive instruments are also still terrible places to be invested.

It will change at some point in time. Everything in the market is cyclical. Bonds were the best place to be in 2008. Gold has had some huge years.

My app ranks these asset classes daily. My daily radio show goes over any significant changes when they occur, and my weekly newsletter strives to keep investors in the right asset classes and out of the wrong ones.

It is up to you. You can allocate your assets all over the place or you can focus in the best asset classes now.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Stock quotes in this article: TLT 

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs