rr0710

Defining a Set of Core Asset Classes

Dr. Considine, your comments about retail investor perspective is spot on

Defining a Set of Core Asset Classes

Even in a secular sideways market (if you recall 1966-1982,) having a core base of non-correlated asset classes worked as a skeletal start to an allocation. We tend to let the present experiences rule future perceptions as opposed to following rules and disciplines. This is a good start to understanding when you're in bear cycle, most asset classes join up and move in the same direction. Natural resources, long-short components, correlate consistently low with U.S./Int'l common stocks. Bull cycles, even if they're cyclical, last 3x longer than bear cycles going back to 1885. And movement out of the bear cycle is fast so if you miss the beginning, you've missed everything and nobody can time the entrance. Dr. Considine is always right on the money