We include a current update from Dr. Shane Olivewr on the importance post GFC of Asset Allocations
A critical lesson of the global financial crisis (GFC) and its aftermath is that asset allocation is critically important. The period of poor returns and high volatility that characterised the GFC and subsequent years clearly demonstrated that asset allocation, by far, swamps the impact of active security selection or manager selection as a driver of investor returns. However, will this remain the case if the global economic and financial outlook continues to improve in the years ahead? Before this is addressed, it is worth putting asset allocation in context.
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