One comment on “Advice for Buy-and-Hold Investors

  1. Your expectation is that this portfolio will beat the market by 3% over the next decade?

    Beating the market by 3% is not really “beating”. It’s *absolutely crushing*. Like, you’re-the-legit-Bernie-Madoff kind of crushing. I believe that overweighting in small-caps and emerging markets might generate these kind of returns under the right conditions. I also suspect they would underperform by 3% in fairly typical bad conditions, whether the funds were “low volatility” or not.

    This looks like a portfolio designed to take advantage of high volatility, in fact. Which might be a great portfolio for a sensible, informed buy-and-hold investor, but that portfolio would probably need a hefty bond or cash-equivalent portion that gave you the ability to re-balance during frequent, significant dips and surges.

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