Lunchtime Takeaway: When asset allocation works

We’re committed to making your practice better, so all this month, we’re delivering you a daily takeaway.

Today’s takeaway is…

When asset allocation works

“For an asset allocation approach to work your investment has to be exposed to a number of different economic cycles, so you’re able to smooth out the market highs and lows.

“A minimum of 10 years and preferably longer is required to properly assess the success of an asset allocation strategy. Sometimes even a 10-year period is not long enough to effectively assess performance, especially when you encounter a recession such as we’ve just been through with its extreme negative effect on performance.” – Andrew Beer, Investors Group

Agree? Disagree? Read: Faceoff: Asset allocation

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.