Apparently a passive portfolio of 50% bonds and 50% stocks wins out in most markets.
There are probably a few things going on here: First bonds and stocks provide great diversification. Second, because the weights are fixed, there is no market timing going on here. Market timing, as we know is a fast way to loose wealth. Third, the stock portfolio is indexed.
In otherwords: diversify, don't market time and index. Simple.
A Finance Professor's blog. I am a Professor of Finance in the Poole College of Management at NC State University. My website: https://sites.google.com/ncsu.edu/warr Opinions are my own.
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