We buy
individual assets too.
Not exact matches
Many
individual investors and mutual funds invested
too much of their
assets in technology stocks.
Far
too many think they can add value by tossing sector funds, exotic
asset classes, or
individual securities into the mix, none of which is likely to boost performance.
So rather than get
too bogged down fitting
individual pegs into economic sized holes, I think the key insight is that one should cover each economic condition with one or more
assets that not only weather the storm but also thrive in that situation.
While everyone's ideal
asset allocation is different based on
individual factors, it is important to make sure that no single
asset class is
too large or overweight.
The blessing of our industry's market - timing scandal — the good for our investors blown by that ill wind — is that it has focused the spotlight on that conflict, and on its even more scandalous manifestations: the level of fund costs, the building of
assets of
individual funds to levels at which they can no longer differentiate themselves, and the focus on selling funds that make money for managers while far
too often losing money — and lots of it — for investors.