An Abundance

Evensky, Harold
October 2007
Journal of Financial Planning;Oct2007, Vol. 20 Issue 10, p38
Academic Journal
The author discusses insights he has gleaned from reading papers in the field of investment research. A low price-to-sales ratio is a consistent predictor of above-average future returns. Correlations among different assets in a portfolio may not be good indicators of diversification. Differing portfolio rebalancing strategies that rebalance annually and use an allocation threshold of around 5% can be expected to perform about the same. Unlike the case in economic markets, financial markets often see demand rise as prices rise.


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