The allocation decision — how much sits in equity, debt, and alternatives — explains most of the variation in long-term portfolio returns. Entry timing explains far less than investors expect, and costs far more than they realise.
The cost of waiting
Investors who wait for clarity usually buy after it arrives, and clarity is priced in by then. A disciplined, staggered entry removes the need to be right about the next three months.
Building the mix
We build allocations around goals and horizons rather than around forecasts. Each sleeve of the portfolio has a job, and we judge it against that job rather than against last quarter’s best performer.
Leave a Reply