The document discusses traditional asset allocation models used by many financial planners that divide investments into categories like stocks, bonds, and cash. It notes that the standard 60/40 portfolio allocation of 60% stocks and 40% bonds and cash may not be optimal as smaller-cap stocks have outperformed large-cap stocks in the past 12 years while fixed income carries more risk now and cash provides no yield. The document suggests most advisors use simple asset allocation models to spread risk rather than actively choosing sectors that are performing well.

1. Mullooly Asset Management Podcast
September 11, 2013
Mullooly Asset Management September 2013

2. Asset Allocation Means Pie Charts
 The tool of most financial planners
 Utilize the traditional 60/40 portfolio
Mullooly Asset Management September 2013

3. Traditional 60/40 Portfolio
 20% Large Growth stocks/funds
 15% Mid-Cap stocks/funds
 15% Small Cap stocks/funds
 10% International/Emerging Markets
 20% Fixed Income/Bonds
 20% Cash/Money Market/Other
Mullooly Asset Management September 2013

4. Problems
 Past 12 years, small-caps have been the best performers
 Large-cap have lagged for most of last 12 years
 Fixed Income now looks to carry more risk
 Cash/Money Market yields zero
Mullooly Asset Management September 2013

5. Why Traditional Asset Allocation?
 Most advisors do not know which sectors are doing
well
 They would rather spread around your dollars and the
risk
Mullooly Asset Management September 2013

6. None of the securities mentioned in this (or any) podcast or
video represent past specific recommendations of Mullooly
Asset Management.
This video is NOT a recommendation to buy or sell any of the
securities mentioned here.
If you’re relying on a podcast for investment advice, you are
likely making a huge mistake.
We strongly urge our listeners to consult with their
investment advisor before they make a decision to buy or sell
any investment.
Mullooly Asset Management September 2013

7. Mullooly Asset Management, LLC
support (at) mullooly (dot) net
732-223-9000
www.mullooly.net
Mullooly Asset Management September 2013