Posts filed under “Asset Allocation”
Source: Novel Investor
Have a look a the chart above (click on the chart for a larger interactive version). This chart ranks the past 15 years of returns for eight major asset classes (large-cap stocks, small-cap stocks, developed-market stocks, emerging-market stocks, real estate investment trusts, high-grade bonds, high-yield bonds and cash). We can divide these categories even further but we’ll use these for now.
What you should take away from the chart is how difficult it is to predict the best-performing asset class in any given year. To choose the right class consistently is almost impossible.
Source: BCA Today’s chart comes to us from Chen Zhao of the Bank Credit Analyst, who writes in a research report: The financial services industry have (sic) begun to feel the pinch of the fallout from low volatility and zero interest rates. The average return delivered by hedge funds has fallen sharply since the…Read More
Nice short list from Rick Ferri: There are other reasons to hire an adviser even if you’re an index believer. Here is a partial list: To put space between you and your investments so that you don’t make emotional decisions. To do detailed research on asset allocation or index funds because you would rather spend…Read More
Source: JP Morgan Whenever anyone asks me about my favorite sector or market for the coming year, I like to show the table above. While not quite a quintillion-to-one bet, the table reveals what a challenge it is to consistently identify the best asset class for the coming year. No one seems to be…Read More
Yesterday, Business Insider posted a huge piece, wherein they ask various folks for their best idea for a decade. With the low key headlne, Wall Street’s Brightest Minds Reveal Their Best Investment Ideas For The Next Decade, here is how I responded: Financial planning: “As it turns out, that is an easy question: Our own…Read More