russ[at]russ.net wrote:

- quote -

Then why is he peddling advice and not out trading his way to riches?

- quote -

This is the answer. The portfolio will be over-allocated to the GREAT stuff.
Sooner or later, great stuff stops being great. When you rebalance a
portfolio, you sell stuff that has been doing great and buy stuff that has not
been doing so well.

- quote -

Probably, but not in the sense of predicting the market.

- quote -

He probably doesn't. A periodic rebalancing of a portfolio is used to manage
risk. You want to stay close to the allocation you have decided is right for
you. It has the nice side effect of selling stuff that has done well (sell
high) and buying stuff that has not done so well (buy low).

-- Doug

russ[at]russ.net wrote:

- quote -

My company had Franklin Balance Sheet in our 401(k) - past tense. It
was removed at the request of the executives of my company. The head
office has started a process to eliminate funds from the 401(k) when
they fail any of a series of tests. This was implemented in response to
SARBOX requirements. In this case, FBS was eliminated because it
performs poorly in bear markets (according to their test methodology).
This really chapped my hide since I was holding it and it was indeed
performing very well. In any case, maybe your co-worker's FP also
believes that FBS performs poorly in bear markets and that we are
entering a bear market.

-Will

I've been looking for a good financial planner for awhile and havent
had much luck. I've decided through research and newsgroups I would
try my best to manage my retirement money without one for now.

A co-worker of mine who has a fancy shmancy high dollar financial
planner said his planner just rebalanced and changed where all his 401k
is going because "things are changing". Of course this is probably all
speculation, but I'm sure any good financial planner can somewhat "read
the market".

So my question is, he had him move a lot of his money out of one of the
mid-cap funds we can choose from in our 401k. Franklin Balance Sheet -
a mid-cap value fund. It's been doing GREAT and is one of the top
performers of all of our funds in our 401k menu.

My question is - does this guy know what he's doing? Is there
something that is going to make mid-cap value funds change very soon,
and if so how does he know? If mid-cap value funds are done doing so
well for awhile, which classes of funds should I be moving my money to?