Discussion Post: Finance
1) What's the difference between asset allocation and security selection? Give an example of why strategic asset allocation is far more important than market timing and security selection.
2) Below are a few articles to extend this topic a little further. What is your take of the current market valuation?
Articles:
• "US Stock Market Capitalization At 2X GDP: How Ominous Is It?" by Nick Sargen.
• "United States Market Capitalization: % of GDP" by CEIC Data.
• "Introduction to U.S. Economy: Housing Market"
• "Can Asset Allocations of Warren Buffett Be a Market Indicator?"
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.