I suppose I have a better opinion of Siegel than most. Maybe it's because he's been a long-time proponent of indexing. And he still maintains that belief in his new book, stating that investors should depend on indexing to up half of a portfolio's core holdings. He's been refered to in a positive light on various occasions by the likes of Bogle, Bernstein and Buffett.
I read an article about a week ago at Univ. of Penn Wharton School's website on Siegels' new book, so I refered back to that article for this data. As I mentioned, Siegel backs about half in index funds, and the other half in what he calls, "return-enhancing strategies, as was already mentioned. However I read a slightly different asset split, which is as follows:
55% - US & Canada
28% - Europe
9% - Japan
3% - remainder of developed Asia
5% - EM
I also understand his enhancements did involve REITS, S&P Global Index and high dividend dow stocks (not necessarily the Dogs tho, IIRC)- which Siegel mentions using the ETF DVY. Could you possibly provide a link to the split you mentioned, to compare with what I thought I understood?
I also thought that there's additional research highlighted in the book which for one, referenced the historical returns of the S&P 500 components from the 1950's on. Additionally, I thought that there was research on the demographics of various countries, market sectors and topics pertaining to Social Security. Again, I haven't read the book yet, but am basing this on several interviews, book summaries and articles from U. Penn, cbsmarketwatch.com, money.com and thestreet.com, as well as a two-part series in my newpaper from a syndicated columnist who's name escapes me (Jeff Brown perhaps?).
An issue that I'm sure would have some investors uncomfortable (not myself and certainly not ben) is Siegel's recommended exposure to say sectors such as energy, reits and even the untraditionally large piece given to international equities. True some studies have shown decreased volatility in portfolios that include individual issues considered quite risky. But all the research in the world won't make some people budge one inch.
I'd be curious to hear from anyone who has read any of the new book. I didn't see where anyone in this thread has done so yet. If I missed it, I apologize.
Bokm