My argument here is that the ability to broadly diversify equity exposure in a cost - effective manner reduces the excess return that equities need to offer in order to be competitive
with safer asset classes.
Not exact matches
It's not always — sometimes you have a fund
with safe underlying investment — but I don't know how you lump all the funds together and put them into a target - date fund or include it as an
asset class in a typical portfolio.
Other than the recent housing bubble, real estate is a relatively
safe asset class that appreciates along
with inflation and the economy.
We chose Litecoin after a long and thorough research process to determine the
asset class that met our criterion: secure,
safe, scalable on - chain and off - chain, low mining fees, and preferably
with adherence to the published Bitcoin core roadmap.
ABCP will remain but
with safer classes of
asset - backed securities, wider spreads, and larger margins of safety, at least until the next lust for yield comes upon us.
One would be Treasury Inflation - Protected Securities (these come
with a government guaranty — they are the
safest and easiest - to - understand
asset class available today).
This, coupled
with indications that the ECB might increase its QE program in March, could be setting the stage for continued negative yields
with positive performance in this «
safe»
asset class.
The Vanguard Emerging Markets Fund offers a relatively
safe way to get some exposure to this
asset class,
with low fees and a diverse portfolio of more than 4,000 stocks, but it should be limited to a small portion of your well - diversified portfolio.
Therefore, it is not surprising to see the intermingling of the highest performing
asset class with what has traditionally been regarded as the
safest and most stable investment
asset.