This time it's different......
Posted: November 19th, 2021, 6:22 pm
There have been a number of thought provoking posts (thanks Dealtn) about asset allocation, and the benefits of rebalancing across equities/bonds/gold etc.
Most of these cite evidence that goes back more than a century - usually in the form of the Barclays Equities/Gilts study. This adds credence in the form of tangible evidence of what has happened in a wide variety of market conditions over a long period.
But..... the very thing that adds confidence - the long time horizon - doesn't really contain much in the way of a recent invention (QE) that has material impact.
Does QE invalidate the whole asset allocation/rebalancing thesis?
Most of these cite evidence that goes back more than a century - usually in the form of the Barclays Equities/Gilts study. This adds credence in the form of tangible evidence of what has happened in a wide variety of market conditions over a long period.
But..... the very thing that adds confidence - the long time horizon - doesn't really contain much in the way of a recent invention (QE) that has material impact.
Does QE invalidate the whole asset allocation/rebalancing thesis?