Using Asset Allocation to make money in a Flat Market: Re: Couch Potato Results : YTD Thru 7/31

» Rande - Re: Couch Potato Results : YTD Thru 7/31

In response to message posted by DennisL:

Congratulations Dennis! The real test of the portfolio's asset allocation is its ability to help investors maintain discipline in adverse market situations. Historically, it doesn't get much worse than the last couple of years and investors who have been able to stay the course with a prudent allocation should feel a sense of confidence that just can't come from listening to the advice of others or reading a book. On the flip side, when the market eventually turns up again such an approach requires the courage to underperform relative to being concentrated in and/or over-allocated to the "hot spots." All this assuming, of course, that you believe short-term trading and market timing are counterproductive to the long-term accumulation of wealth.

-- posted by Rande