Comments on: Historical Investment Returns of Asset Classes Over The Last Decade http://investingtoolkit.com/historical-investment-returns-asset-classes/ Discount Brokers, Stock Investor Tools and Investment Resources Galore Wed, 10 Mar 2010 19:58:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Francis Investor http://investingtoolkit.com/historical-investment-returns-asset-classes/comment-page-1/#comment-28 Francis Investor Mon, 21 Sep 2009 05:35:37 +0000 http://investingtoolkit.com/?p=399#comment-28 Mutual funds and asset allocation are for your average retail investor. At the very least, this is what you can do to participate in the stock market while controlling your risk. More sophisticated investors can certainly do more. By learning more about investing, you can do much with the money you already have. But some of us don't have time to develop that kind of acumen, so we leave it up to "good mutual fund managers" to help us -- or better yet, we find index funds to simply track market returns. If you're beating the market through other strategies, then good for you -- but most people can't. Mutual funds and asset allocation are for your average retail investor. At the very least, this is what you can do to participate in the stock market while controlling your risk. More sophisticated investors can certainly do more. By learning more about investing, you can do much with the money you already have. But some of us don’t have time to develop that kind of acumen, so we leave it up to “good mutual fund managers” to help us — or better yet, we find index funds to simply track market returns.

If you’re beating the market through other strategies, then good for you — but most people can’t.

]]> By: Mark Wolfinger http://investingtoolkit.com/historical-investment-returns-asset-classes/comment-page-1/#comment-26 Mark Wolfinger Sat, 19 Sep 2009 15:09:40 +0000 http://investingtoolkit.com/?p=399#comment-26 I'm disappointed that you recommend 'good mutual funds.' You mention that one characteristic of such a fund is the manager's reputation. What you don't mention is that managers change too frequently for investors to really keep track of who is in charge. In addition, statistics are available that show that funds which outperform one year are NOT more likely to outperform the next year. Sure, there are stars in every field, but those star managers don't run no-load funds. A prudent investor needs more than asset allocation to protect the value of his/her portfolio. That investor needs a guarantee that losses will NEVER be too large and in fact - the loss limit can be established in advance. It possible to achieve that, but the vast majority of professional advisors fail to teach their clients about collars. There's more to investing than just proper asset allocation. I’m disappointed that you recommend ‘good mutual funds.’

You mention that one characteristic of such a fund is the manager’s reputation. What you don’t mention is that managers change too frequently for investors to really keep track of who is in charge.

In addition, statistics are available that show that funds which outperform one year are NOT more likely to outperform the next year. Sure, there are stars in every field, but those star managers don’t run no-load funds.

A prudent investor needs more than asset allocation to protect the value of his/her portfolio. That investor needs a guarantee that losses will NEVER be too large and in fact – the loss limit can be established in advance. It possible to achieve that, but the vast majority of professional advisors fail to teach their clients about collars. There’s more to investing than just proper asset allocation.

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