A large portion of the returns (near 90%) stems from which asset class and how much you allocate to them.
A small portion (10%) is the individual issues.
Which is why they say get your asset allocation wrong, unbalanced and you will have an issue.
But there are so many kinds of asset allocation out there and experts are touting that theirs are the most sound.
Mebane Faber tries to make sense of it. On this post here, he sought to consolidate all the allocation by experts, academics, university endowment funds in one post.
These are all age old asset allocation strategies through a period of high inflation and then lower inflation but sustain growth follow by a secular bear market.
This is his result:
(click image to blow it up)
It looks to me that different strategies the biggest difference is the standard deviation and Sharpe ratio. ...
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