How Portfolio Managers Tackle Asset Allocation
Many right answers but different investor experiences along the way with a variety of stock/bond asset allocations.
This analyst blog is part of our coverage of the 2016 Morningstar Investment Conference.
Moderator Jeff Holt started with a poll for the panel: What stock/bond asset allocation returned the most over the past 15 years? 60/40, 80/20, or 40/60? Everyone who raised a hand got a right answer: $10,000 would have grown to nearly $23,000 with any of the allocations. However, although the outcome was the same, investor experiences would not have been, given the different levels of volatility along the way.