Saturday, April 14, 2012

Lower Equity Returns The New Norm? Think Again.

David Booth of Dimensional Fund Advisors does a great job of explaining market cycles.  There is no evidence that current investor sentiment has predictive power for future returns.  A case can actually be made that investors are usually wrong and we should expect higher than expected returns in the years to come.  Either way a properly diversified portfolio will still be the best way to reach your long term goal.

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