Asset Allocations, Starting Points, and Diversification

Justin here. I ran across this great (short) video from Roger Ibbotson (the unofficial father of market research) about asset allocation, starting points, and diversification. At JSCO, we talk a lot with clients about how much an investor’s return depends on valuations when they start. Investing last year when all valuations were low was a no-brainer. Investing today, when valuations are inflated, takes a bit more precision (throwing darts at the WSJ won’t do.) Ibbotson brings up a good point when he mentions bonds’ relative historical starting point.

See it here: http://www.morningstar.com/cover/videocenter.aspx?id=328583&sr=wt0110

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