Read full blog here
In this episode, Stuart delves into the concept of strategic asset allocation and its critical importance in maximising long-term investment returns. He presents evidence demonstrating the unpredictability of short-term returns across asset classes, highlighting the need for diversification. However, Stuart argues that long-term returns are more predictable due to the principle of mean reversion.
He advocates for an approach that involves actively allocating new capital towards undervalued asset classes or geographical markets, rather than blindly following a one-size-fits-all asset allocation model. Stuart believes that this strategy, though potentially leading to imbalanced portfolios in the short term, positions investors for superior long-term performance by capitalising on opportunities for above-average future returns.
Throughout the episode, Stuart emphasises the importance of maintaining a long-term perspective, employing evidence-based investment strategies, and resisting the temptation to chase short-term returns. He challenges the conventional wisdom of adhering to theoretical asset allocation models, arguing that maximising client returns should be the primary objective, even if it means adopting an unconventional approach.
DOWNLOAD our 97-point financial health checklist here: https://prosolution.com.au/download-checklist/
Do you have questions? Email questions@investopoly.com.au
If this episode resonated with you, please leave a rating on your favourite podcast platform. It helps me reach more incredible listeners like you. Thank you for being a part of this journey! :-)
Click here to subscribe to Stuart's weekly email.
SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here.
Work with Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website.
IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.
Read full blog here
In this episode, Stuart delves into the concept of strategic asset allocation and its critical importance in maximising long-term investment returns. He presents evidence demonstrating the unpredictability of short-term returns across asset classes, highlighting the need for diversification. However, Stuart argues that long-term returns are more predictable due to the principle of mean reversion.
He advocates for an approach that involves actively allocating new capital towards undervalued asset classes or geographical markets, rather than blindly following a one-size-fits-all asset allocation model. Stuart believes that this strategy, though potentially leading to imbalanced portfolios in the short term, positions investors for superior long-term performance by capitalising on opportunities for above-average future returns.
Throughout the episode, Stuart emphasises the importance of maintaining a long-term perspective, employing evidence-based investment strategies, and resisting the temptation to chase short-term returns. He challenges the conventional wisdom of adhering to theoretical asset allocation models, arguing that maximising client returns should be the primary objective, even if it means adopting an unconventional approach.
DOWNLOAD our 97-point financial health checklist here: https://prosolution.com.au/download-checklist/
Do you have questions? Email questions@investopoly.com.au
If this episode resonated with you, please leave a rating on your favourite podcast platform. It helps me reach more incredible listeners like you. Thank you for being a part of this journey! :-)
Click here to subscribe to Stuart's weekly email.
SPECIAL OFFER: Buy a one of Stuart's books for ONLY $20 including delivery. Use the discount code blog here.
Work with Stuart's team: At ProSolution Private Clients we encourage clients to adopt a holistic and evidence-based approach when making financial decisions. Visit our website.
IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.