December is often the time of retrospection and yearly wrap-ups, with stories recapping events of the last year and looking forward to new opportunities. In the finance space, you’ll find endless collections of the top performers of the year and forecasts for the one to come. While that’s all interesting and comforting in its own ritualistic way, this holiday season I decided to revisit a bold question that’s much bigger than short-term market news cycles:
What do the most efficient portfolios in history have in common?
Truly understand that answer, and much of the market noise that worries you from day-to-day and year-to-year loses its power over not only your emotions but also your account balances. So if you’ve ever wanted to think beyond your investing assumptions and explore the data for proven ways to approach timeless portfolio problems, grab a cup of coffee and pull up a chair. This article is for you.