Avoid Market Timing
You never know which market segments will outperform from year to year. By holding a globally diversified portfolio investors are well positioned to seek returns wherever they occur.
Pursuing a Better Investing Experience #6
Practice Smart Diversification
Holding securities across many market segments can help manage overall risk. But diversifying within your home market may not be enough. Global diversification can broaden your investment universe.
Pursuing a Better Investing Experience #5
Consider the Drivers of Returns
Academic research has identified these equity and fixed income dimensions, which point to differences in expected returns.
Investors can pursue higher expected returns by structuring their portfolio around these dimensions.
Pursuing a Better Investing Experience #4
Let Markets Work For You
The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.
Pursuing a Better Investing Experience #3
Resisting Chasing Past Performance
Some investors select mutual funds based on their past returns. Yet, past performance offers little insight into a fund’s future returns. For example, most funds in the top quartile (25%) of previous three-year returns did not maintain a top‐quartile ranking in the following three years.