source: https://awealthofcommonsense.com/2024/07/a-balanced-portfolio-always-comes-with-regrets/
Here’s a scenario I was presented with recently:
Five years ago, a relatively conservative investor was sitting on some cash and seeking a more balanced portfolio.
To keep things simple, this investor split the difference between stocks and bonds by allocating 50% to equities and 50% to fixed income.
Five years later there is a clear winner in terms of performance within this 50/50 portfolio:
You basically doubled ...