Equity Asset Allocation Didn't Work in 2008 [View article]
Richard- I have a question for you. If I want to select the world (free floating) as my portfolio benchmark. 5 years down the road when China makes up twice as large a part of the world market cap do I go back and readjust my benchmark or do I leave it where it started - frozen. We talk a lot about rebalancing without mentioning the fact that the world is dynamic and so are the benchmarks. How do we manage the inherent conflict between having to find a stable bencmark and one that reflects the world we live in? May be I am missing sth. here...
Equity Asset Allocation Didn't Work in 2008 [View article]
I have a question for you. If I want to select the world (free floating) as my portfolio benchmark. 5 years down the road when China makes up twice as large a part of the world market cap do I go back and readjust my benchmark or do I leave it where it started - frozen. We talk a lot about rebalancing without mentioning the fact that the world is dynamic and so are the benchmarks. How do we manage the inherent conflict between having to find a stable bencmark and one that reflects the world we live in?
May be I am missing sth. here...