FYI: It’s hard to find many investment books since the turn of the century that don’t include the research paper from Roger Ibbotson and Paul Kaplan called Does Asset Allocation Explain 40, 90, or 100 Percent of Performance?1
The study was meant to decipher whether it was asset allocation or market timing and security selection that drove portfolio performance. The conclusion showed that more than 90%of a portfolio’s long-term variation in return was explained by its asset allocation, leaving only a small amount that can be explained by an investor’s ability to time the market or successfully choose individual securities.
Regards,
Ted
https://awealthofcommonsense.com/2019/02/how-to-wreck-a-pension-plan-in-3-easy-steps/
