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An interesting thought concerning equity allocations looked at earlier - Matt Busigin notes a...

Monday, July 2, 2012, 3:20 PM ET
An interesting thought concerning equity allocations looked at earlier - Matt Busigin notes a 60/40 mix (chart) of stocks/bonds has outperformed both the S&P and bonds individually over the last 3 years, and with substantially less risk.

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This news story has 3 comments:

Arnbjorn Ingimundarson Comments (169)

How can a portfolio of assets possibly have a higher return than its best performing asset?

2 Jul 2012, 03:25 PM Reply Like

Tatertot Comments (136)

Because of portfolio rebalancing. When bonds outperform, it will cause the value of that part of the portfolio to rise relative to stocks, so bonds are sold and stocks are bought. It is a way to ensure discipline to buy dips and sell rallies.

2 Jul 2012, 07:38 PM Reply Like

bbro Comments (7895)

Past performance is not indicative of future results...especially with
the 10 year at 1.6% and Baa yields at 5.00%

2 Jul 2012, 03:31 PM Reply Like

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