We review several alternative portfolios and discuss their prospects in 2016.

We are cautious on Strategic Asset Allocation Portfolios. With stocks still being at a high valuation, we believe these portfolios might suffer from a big loss before they can recover and grow again. We discuss long term valuations and forecasts. 

2015 is one of the four years since 1970 that no one asset among stocks, REITs, gold and bonds derived more than 10% return. It is a trendless, whipsaw year that is hard for any trend following asset allocation portfolios. 

2015 is a challenging year for both global strategic allocation portfolios as well as tactical portfolios. 

We take a note that in addition to the beaten down stocks in 2014, which continue to be in a more distressed state, high yield bonds and oil & gas stocks are joining the distressed asset group. 

Diversification has hurt global allocation portfolios this year. However, it is still one of the most important tools to control risk and enhance returns in the long term. 

Diversification has hurt global allocation portfolios this year. However, it is still one of the most important tools to control risk and enhance returns in the long term. 

We propose a simple and intuitive method to show that it is more rewarding to adopt a pragmatic approach in investing: being an investor and speculator combined results in the best returns and smallest risk. We propose a simple and intuitive method to show that 

Active funds have difficulty to outperform index funds, at least long enough to test many investors’ patience.

We review permanent, risk parity and alternative portfolios and discuss outlook of the major asset classes they are based on. 

We review core mutual funds used in major brokerages. They represent core asset classes. 

We review key index ETFs that represent core asset classes. 

We review total return bond funds and their portfolios. 

We review some of advanced portfolios and point out how to properly use them. 

We discuss commodities as an asset class and point out that they should be still kept as a candidate asset class, at least for tactical asset allocation strategies. 

We propose a core satellite portfolio solution to 401k accounts that have active constant new contributions. 

At the current market environment, it is pertinent to explore how to adding a risk management layer to a strategic buy and hold portfolio. 

Finding the best investment strategy is everyone’s quest. However, it is dangerous to switch impulsively without doing enough due diligence. 

We discuss how to establish a core satellite portfolio in the current market condition. 

Recent stock market correction creates an opportunity for investors to reposition their portfolios that include strategic, tactical and core satellite.