Thursday, October 17, 2013

Blast from the Past

I was just wondering how things have actually been going for asset allocators, so I took a quick spin around the web and managed to churn out these 2 interesting finds.

First one is from none other than Blackrock.

The picture here is just in case you're bloody lazy to click my link on top. This is the best updated .jpeg that I could find on the web, because I'm too lazy to take a screenie of the most updated one with 2013 figures.

However, if you mosey over to the latest figures (the ones that I will talk about), you can see that the diversified portfolio is at the lowest end of what one might consider as a reasonable return. Portfolios above it yielded less than 50% better than it, while portfolios below performed less than 50% of it.

Next up, we have some tables from Ritholtz, once again showing similar results. The origins of those statistics came from the Washington Post, so a separate source. There is another table at the link which shows fixed income returns as well.

Basically, seeing these tables again have made me more comfortable with my decision to seriously explore and put to use methods of asset allocation when investing, be it in equities, fixed income or throughout my whole portfolio.

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