On the asset allocation section of our website, we explain our methodology for estimating the 10 - year real returns of equity markets, as well as other global asset markets.
Not exact matches
It doesn't always work (read about that
on the disadvantages of
asset allocation section of this page), but the winning picks beat the duds enough to add plenty of long - term value.
In this case, it is buying the dips, buying a value - weighted cross
section of the market, and putting your
asset allocation on autopilot.
Having already read The Intelligent Investor before reading this, I pretty much skimmed the entire book until I got to the
section on index funds and
asset allocation.