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Are Some Flexible Funds Proving Academics Wrong?

Tactical target-date funds are outperforming those that don't zig when the market zags.

Market-timers beware. That's the conclusion of academic studies that suggest it's very difficult for money managers to consistently be correct when it comes to tactical portfolio moves, such as sector or asset-allocation bets on a shorter-term outlook. 

But Morningstar's recently released 2014 Target-Date Research paper has found that target-date retirement fund managers that may tactically deviate from the funds' strategic, long-term asset-allocation paths generally have beaten their peers.

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