“There is very little “scientific” information about how to invest a portfolio. The few things we know about investing:
- Asset allocation determines the vast majority of a portfolio’s return.
- Over a 10 year period, the vast majority of professional stock pickers underperform the market.
- There is no way to increase return without increasing risk.
- Rebalancing a portfolio to a predetermined asset allocation increases total return over the long term.
- The stock market always goes up over the long term.
- Bond prices should not change over the long term, unless interest rates have changed.
This lack of information, makes it easier to do your own wealth management.
