wabmester
Thinks s/he gets paid by the post
- Joined
- Dec 6, 2003
- Messages
- 4,459
donheff said:In 1996- 2000 I was dumping lots of money into savings but hadn't studied allocation practices and the like.
I wonder how many people here did follow some "smart" asset allocation model 10 years ago. Maybe it's just the places I hang out, but it almost seems like "asset allocation, index funds, and dividends" is simply the new mantra that replaced "cash is trash, and the trend is your friend."
So, what else has changed in the last few years?
The global markets are much more interconnected than they have been in the past (just look at the influx of foreign capital into the US), and we're no longer in a falling interest rate environment (the last one lasted 20 years).
Anybody besides me who thinks these last two differences have made "smart" asset allocation much less smart? I think we'll see much higher correlations among asset classes in the coming years.