Getting a Grip

Jahnke, William
April 2002
Journal of Financial Planning;Apr2002, Vol. 15 Issue 4, p28
Academic Journal
This article focuses on issues related to the asset allocation process in the U.S. There is a growing chorus of academics, consultants and investment advisors who are lowering long-term stock market return expectations and calling for a reappraisal of savings goals and asset allocation solutions. With the end to the new economy thinking, a realization has emerged that markets cannot always be trusted to reflect fair values, that asset-class return expectations can deviate materially from historical returns, and setting an asset allocation solution is not necessarily the wisest course of action. The fundamental problem with static asset allocation is that it disconnects investment reality from the goal of meeting client financial objectives.


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