Ken Kam, the Marketocracy CEO who runs the Core Portfolio and the Explore Portfolio on the Covestor platform, recently penned a piece for Forbes about how he’s investing in 2014 after last year’s big rally.
“With the S&P 500 up almost 30% last year, many investors are trying to decide whether the market has gotten too far ahead of the real economy or if we are just at the beginning of a new bull market with a lengthy future ahead of it. I do not have the answer, so instead, I have devised a strategy for individual investors who, like me, are unsure, and do not want to bet entirely one way or the other.”
The portfolio manager said investors might want to be aggressive but also diversified for 2014.
“The best solution is to retain a portion of your portfolio that you are comfortable with in your own best ideas that are currently producing good returns. In other words, allocate appropriately in your own best ideas, but do not overweight. Then, invest the remainder of your portfolio in the proven, successful best ideas of someone else rather than in your own second-best ideas.”
Read the full article at Forbes.