TITLE

The Rewards of Multiple-Asset-Class Investing

AUTHOR(S)
Gibson, Roger C.
PUB. DATE
July 2004
SOURCE
Journal of Financial Planning;Jul2004, Vol. 17 Issue 7, p58
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article focuses on the rewards of multiple-asset-class investing. A more contemporary translation of the idea of such kind of investing is that every investor creates a diversified portfolio that allocates one third to real estate investments, one third to common stocks, with the remaining one third allocated to cash equivalents and bonds. The overall portfolio balance is one-third fixed income investments and two-thirds equity investments. Diversification across two major forms of equity investing with dissimilar patterns of returns further reduced the equity risk. The result is a balanced portfolio, tilted toward equities, appropriate for an investor with a longer investment time horizon who is simultaneously concerned about risk and return. Such is a remarkably elegant and powerful asset allocation strategy. Allegedly, democracies and free enterprise have replaced many of the world's dictatorships and centrally directed economies. New capital markets are forming, and investment alternatives have proliferated.
ACCESSION #
13700605

 

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