The finding that a simple 60/40 portfolio has outpeformed the market-cap-weighted World Portfolio over time is fasinating. It highlights how concentration risk in U.S. equities and tech stocks might not always translate to better risk-adjusted returns. Given that overseas ownership of U.S. equities is at record highs, it makes you wonder if diversification is being undervalued in favor of momentum.
Insightful 💯
Excellent content, data and analysis yet again!
Thanks, Inian :)
The finding that a simple 60/40 portfolio has outpeformed the market-cap-weighted World Portfolio over time is fasinating. It highlights how concentration risk in U.S. equities and tech stocks might not always translate to better risk-adjusted returns. Given that overseas ownership of U.S. equities is at record highs, it makes you wonder if diversification is being undervalued in favor of momentum.