Super Butterfly Wireless

If you have a portfolio of stocks, how do you decide when to buy shares and when to sell shares and keep cash in your portfolio. This is the fundamental question behind asset allocation. Studies show that a high percentage of the variance of the asset allocation determines the return of the portfolio is correlated with the asset allocation decision. There are strategies that deals with such problems. This article talks about 2 key strategies that you can consider.

Let us look at the first key strategy in asset allocation - the constant-mix strategy. The underlying buy sell principle in this strategy is to buy shares when the market is down and sell them when the market bounce right back. It is like a contrarian strategy. The word constant in this strategy name refers to the principle of asset allocation, which is to keep the ratio of stock to total asset at a constant ratio.

Let us run through an example to explain the constant-mix strategy. Suppose you have a portfolio value of $100,0000, 60% of which is in shares, 40% cash. Your share-to-total asset ratio will be 60%. Say 60% is the constant ratio that you want to maintain. What happens when the market plummets and your share value drops by 10% or $6,000 to $54,000 and your total asset drops to $94,000. To keep your share-to-asset ratio at 60%, you need to hold 60% of $94,000 or $56,400, which means you need to buy another $2,400 worth of shares.

As you can see from the example above, this strategy will encourage you to buy more stocks during a down market. This strategy can be employed in normal market situation, and is suited for investors who can tolerate the drop in portfolio value during a down market.

The second key strategy is called the constant proportion insurance strategy. The underlying buy sell principle is just the opposite of the constant mix strategy - sell shares when the market is down and buy them when the market rebound. This strategy is useful in a super bull and super bear market when we need to protect our portfolio. The word insurance refers to the principle of portfolio preservation, as we shall see in the example below. The amount of money invested in shares is a proportion or multiplier of total asset minus a floor value, where floor is the minimum portfolio value to be held. This formula goes like this, multiplier x (total asset - floor value).

Borrowing the same example before, assuming the multiplier is 2 and floor is $70,000, so we invest 2 x ($100,000-$70,000) or $60,000. if the market drops by 10%, our share value drops to $54,000 and the amount invested should be 2 x ($94,000-$70,000) or $48,000. This means that $6,000 of shares needs to be sold for cash to bring the cash level back to $46,000. We will continue to sell shares and hold cash until the asset hits $70,000, which is our floor value for our portfolio.

Looking at both strategies, it is clear that the choice of strategy depends on the prevailing economic situation. the constant-mix strategy is suitable in normal market conditions and allows us to buy quality shares at low price while in super bull or bear market, the constant proportion insurance strategy allows us to protect our portfolio in a super bear market or make money in a super bear market.

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BlackBerry Curve 8520/8530 Rubberized White Swirly Flowers w/Butterfly On Black Snap-On Protector Case Faceplate $12.99 Blackberry Curve 8520/8530 Rubberized White Swirly Flowers w/Butterfly On Black Cell Phone Snap-On Protector Case Faceplate - Protect and personalize the look of your Blackberry Curve 8520/8530 model cell phone with this attractive Rubberized White Swirly Flowers w/Butterfly On Black snap-on protector case.Buy this quality cell phone protector case for your Blackberry Curve 8520/8530 today and we'll ship it to your home or business for FREE! Wireless Emporium GUARANTEES your satisfaction on all of our quality cell phone faceplates. Limited supply - ORDER YOURS TODAY!

Samsung Galaxy Indulge/R910 Rubberized White Swirly Flowers w/Butterfly on Black Snap-On Protector Case Faceplate $12.99 Samsung Galaxy Indulge/R910 Rubberized White Swirly Flowers w/Butterfly on Black Cell Phone Snap-On Protector Case Faceplate - Protect and personalize the look of your Samsung Galaxy Indulge/R910 model cell phone with this attractive Rubberized White Swirly Flowers w/Butterfly on Black snap-on protector case.Buy this quality cell phone protector case for your Samsung Galaxy Indulge/R910 today and we'll ship it to your home or business for FREE! Wireless Emporium GUARANTEES your satisfaction on all of our quality cell phone faceplates. Limited supply - ORDER YOURS TODAY!

LG Banter Touch UN510 Rubberized White Swirly Flowers w/Butterfly on Black Snap-On Protector Case Faceplate $12.99 LG Banter Touch UN510 Rubberized White Swirly Flowers w/Butterfly on Black Cell Phone Snap-On Protector Case Faceplate - Protect and personalize the look of your LG Banter Touch UN510 model cell phone with this attractive Rubberized White Swirly Flowers w/Butterfly on Black snap-on protector case.Buy this quality cell phone protector case for your LG Banter Touch UN510 today and we'll ship it to your home or business for FREE! Wireless Emporium GUARANTEES your satisfaction on all of our quality cell phone faceplates. Limited supply - ORDER YOURS TODAY!

Motorola Atrix 4G Rubberized White Swirly Flowers w/Butterfly on Black Snap-On Protector Case Faceplate $12.99 Motorola Atrix 4G Rubberized White Swirly Flowers w/Butterfly on Black Cell Phone Snap-On Protector Case Faceplate - Protect and personalize the look of your Motorola Atrix 4G model cell phone with this attractive Rubberized White Swirly Flowers w/Butterfly on Black snap-on protector case.Buy this quality cell phone protector case for your Motorola Atrix 4G today and we'll ship it to your home or business for FREE! Wireless Emporium GUARANTEES your satisfaction on all of our quality cell phone faceplates. Limited supply - ORDER YOURS TODAY!

Apple iPhone 3G/3G S Full Bling Black Rainbow Butterfly Snap-On Protector Case $16.99 Apple iPhone 3G/3G S Full Bling Black Rainbow Butterfly Snap-On Faceplate - Protect and personalize the look of your Apple iPhone 3G/3G S cell phone with this attractive Full Bling Black Rainbow Butterfly snap-on protector case.Buy this quality cell phone protector case for your Apple iPhone 3G/3G S today and we'll ship it to your home or business for FREE! Wireless Emporium GUARANTEES your satisfaction on all of our quality cell phone faceplates. Limited supply - ORDER YOURS TODAY!

Apple iPhone 4 Verizon White Rainbow Butterfly Snap-On Protector Case Faceplate $9.99 Apple iPhone 4 Verizon White Rainbow Butterfly Cell Phone Snap-On Protector Case Faceplate - Protect and personalize the look of your Apple iPhone 4 Verizon model cell phone with this attractive White Rainbow Butterfly snap-on protector case.Buy this quality cell phone protector case for your Apple iPhone 4 Verizon today and we'll ship it to your home or business for FREE! Wireless Emporium GUARANTEES your satisfaction on all of our quality cell phone faceplates. Limited supply - ORDER YOURS TODAY!

Apple iPhone 4 Verizon Rubberized White Rainbow Butterfly Snap-On Protector Case Faceplate $9.99 Apple iPhone 4 Verizon Rubberized White Rainbow Butterfly Cell Phone Snap-On Protector Case Faceplate - Protect and personalize the look of your Apple iPhone 4 Verizon model cell phone with this attractive Rubberized White Rainbow Butterfly snap-on protector case.Buy this quality cell phone protector case for your Apple iPhone 4 Verizon today and we'll ship it to your home or business for FREE! Wireless Emporium GUARANTEES your satisfaction on all of our quality cell phone faceplates. Limited supply - ORDER YOURS TODAY!

Apple iPhone 4 Rubberized White Rainbow Butterfly Snap-On Protector Case Faceplate $9.99 Apple iPhone 4 Rubberized White Rainbow Butterfly Cell Phone Snap-On Protector Case Faceplate - Protect and personalize the look of your Apple iPhone 4 model cell phone with this attractive Rubberized White Rainbow Butterfly snap-on protector case.Buy this quality cell phone protector case for your Apple iPhone 4 today and we'll ship it to your home or business for FREE! Wireless Emporium GUARANTEES your satisfaction on all of our quality cell phone faceplates. Limited supply - ORDER YOURS TODAY!

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