If you invested money in the last 4 years, you are probably feeling like a Genius. Since the 2009 lows you made plenty of money, except for those few summer months, your strategy has been great, you bought those SIP's, you diversified your portfolio. Well, you barely had to look at your portfolio.
The reason your in such is a good mood is that all all asset classes have moved together directionally albeit with different intensity.
Below is a comparison of:
Templeton Global Bond Fund/ SPY (for a clear picture)
Templeton Global Bond Fund/ SPY/ Sensex (with the chop)
Now you see what i mean: Portfolio diversification is your advisers favorite smoke and relative returns his wand and as soon as this market turns your absolute returns will do the disappearing act.
The reason your in such is a good mood is that all all asset classes have moved together directionally albeit with different intensity.
Below is a comparison of:
Templeton Global Bond Fund/ SPY (for a clear picture)
Templeton Global Bond Fund/ SPY/ Sensex (with the chop)
Now you see what i mean: Portfolio diversification is your advisers favorite smoke and relative returns his wand and as soon as this market turns your absolute returns will do the disappearing act.
hmmm. Gonna bug you for investment advice when I need it. Cheers
ReplyDeletewhen do you think you will need it?
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