Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
New member - emerging asset classes outstrip historic assumptions issue
Old 04-16-2007, 07:41 AM   #1
Confused about dryer sheets
 
Join Date: Apr 2007
Posts: 1
New member - emerging asset classes outstrip historic assumptions issue

Hello, I'm wondering if any work has been done or consideration given to the
fact that at a retail investment level the types of investments globally that
are available at a click of a mouse bear no resemblance to what was available
100 years ago, or even 30 years ago. We have access to investments in
economies growing far faster than our own - there may not be enough
historical data to back test this in Firecalc, but it may be that going forward well diversified
portfolios with international component will return more than one based solely US stocks and bonds.

There is more that I could add on the subject, but brevity being the soul of wit.
__________________

__________________
xelaguy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: New member - emerging asset classes outstrip historic assumptions issue
Old 04-16-2007, 09:43 AM   #2
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,563
Re: New member - emerging asset classes outstrip historic assumptions issue

Welcome to the board, xelaguy.

Quote:
Originally Posted by xelaguy
Hello, I'm wondering if any work has been done or consideration given to the
fact that at a retail investment level the types of investments globally that
are available at a click of a mouse bear no resemblance to what was available
100 years ago, or even 30 years ago. We have access to investments in
economies growing far faster than our own - there may not be enough
historical data to back test this in Firecalc, but it may be that going forward well diversified portfolios with international component will return more than one based solely US stocks and bonds.
Yes, and these international investments have been available to their country residents for as at least as long as U.S. investments have been to U.S. residents. You could get some feel for the diversification by reading "Triumph of the Optimists" by Dimson & Marsh.

They may not necessarily return more but they may be less volatile.

Do us a favor-- if you have more on this subject, please start a new thread in "FIRE & Money" and limit this thread to a "Hi, I am..." introduction.
__________________

__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: New member - emerging asset classes outstrip historic assumptions issue
Old 04-17-2007, 09:07 PM   #3
Recycles dryer sheets
aenlighten's Avatar
 
Join Date: Apr 2007
Posts: 275
Re: New member - emerging asset classes outstrip historic assumptions issue

Jeremy Siegel would say they should do better but investors will overpay for growth driving down returns. Growth requires a lot of capital, so it is not as productive as one would imagine. Even though Britain has been mature a long time, returns have been comparable to America. If they weren't, investors would drive down prices and up returns. Diversification is worthwhile though.
__________________
aenlighten is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Stack rank asset classes by tax liability JJac FIRE and Money 10 04-28-2007 09:25 AM
Nominal rates of return & SD for asset classes walkinwood FIRE and Money 5 04-26-2007 10:54 AM
Why are so many asset classes correlated and impact on AA? Olav23 FIRE and Money 8 03-29-2007 07:32 PM
Total market index vs asset classes Roger_R FIRE and Money 5 06-12-2004 05:27 PM
Categorizing Asset Classes DFW_M5 FIRE and Money 12 02-23-2004 03:23 PM

 

 
All times are GMT -6. The time now is 11:21 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.