Sunday
Jul122009
HAVE YOU BEEN SOLD ON "ASSET ALLOCATION"?
Sunday, July 12, 2009 at 3:35PM Read this from the Wall Street Journal:
Carl Mahler stood before a group of fellow financial advisers recently and voiced frustration and fear that a fundamental tenet of investing had been proved wrong.
"Hi. My name is Carl, and I'm a recovering asset-allocationist," the Raymond James Financial adviser quipped.
Asset allocation, a bedrock of investing for decades, appeared to fail miserably in 2008. The conviction shared by most investors -- that they should spread their money across myriad asset classes to minimize losses -- was shaken as nearly all markets tumbled in unison.
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