Originally published at Bloomberg.com | October 17, 2017
The past eight years were friendly to investors. Stock and bond prices soared, and volatility collapsed. For much of the period, the dispersion of returns within asset classes was below historic norms. In short, it was difficult to beat the index.
As we exit this long and fruitful period, investors must guard against complacency, including misplaced faith that a “balanced portfolio” of equity and bond exposures remains prudent. As the drivers of return change, so must investing behavior. Continue Reading