Constructing portfolios successfully for the long-run
In our previous Intelligent Allocator we argued that attempts to avoid market corrections often prove costlier than riding them out. Some readers wondered whether this expressed scepticism towards active investment management. Hardly. The choice is not between active and passive strategies, but rather between sitting indefinitely in cash or investing nimbly with a core strategy that adapts as the world shifts – our analysis offers clear answers.
To use an historical analogy, for more than three centuries, Scandinavia’s Vikings ventured far beyond their home waters, reaching as far as ‘Vinland’ on the coast of North America. They sailed west not because they could accurately forecast the weather, but because they combined…
