Each year, Portfolio Solutions, LLC puts forth a 30-year forecast for stock and bond market returns. This forecast is intended for making long-term asset allocation decisions as opposed to short-term tactical decision. We know it’s not possible to predict short-term asset class returns and do not try. However,
Read more →Mutual fund portfolios that hold only index funds have a far greater chance for higher returns than those holding actively-managed funds. The evidence in favor of all index funds, all of the time, is irrefutable, overwhelming and important to all investors. Most articles on index fund investing compare
Read more →Index investing through exchange-traded products (ETPs) continues to gain momentum in all asset classes. Despite a global economic downturn in 2008, the pace of new issuance in exchange-traded funds (ETFs) and exchange-traded notes (ETNs) continued. US exchanges added 221 new products that track a variety of new and
Read more →Index investors have the highest probabilities of meeting their investment objectives. The returns of index funds are better than the average active funds in every investment category, and portfolios of index funds romp portfolios of actively managed mutual funds. The job of creating an all-index fund portfolio is
Read more →This is a true story. It is about investment advisors and how they mislead clients and prospects by comparing their account performances improperly with indexes. This is not a story I enjoy telling, but it unfortunately happens all too frequently in the advisor marketplace. I recently participated in
Read more →Active investment managers attempt to select superior securities or time markets to earn results that consistently outperform a static benchmark. You would think, based on the marketing messages from active managers, that they have been successful at delivering robust returns over the decades. This isn’t the case. In
Read more →The large declines in global stock and bond markets reflect a lack of confidence in the financial system that has its roots in failed US home mortgages. Credit has become extremely difficult to obtain as banks are unable to sell non-performing assets, shun new business loans and hoard cash.
Read more →Portfolio Solutions is a low cost investment advisor registered in all 50 states. Our fee is 0.25%* per year subject to a fixed minimum. All client portfolios employ a global balanced approach using Modern Portfolio Theory. We believe proper asset allocation and low fees combined with prudently selected index
Read more →Asset allocation is often divided into two camps, strategic and tactical. These are two very different strategies with very different risks and returns. Strategic asset allocation involves a fixed allocation to asset classes that is based on long-term views of market returns and long-term correlations among markets. Each
Read more →Ask your friends about their investment performance and stand by for a wide range of inflated guesstimates. Most people have only a vague idea of their returns, and when pressed, they’ll typically guess higher than the markets even though they can’t tell you how the markets performed. It’s
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