Why Equally Weight?
Do you see a pattern?
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Neither do we.
Until we do we will equally weight all asset classes. Why equally weight? We believe that over and underweighting assets are bets for, or against the markets – bets that are often wrong. A recent Fidelity Investments study showed that from 1990-2009 an equally weighted hypothetical portfolio of nine major asset classes outperformed an investment each year in the prior year best or worst performing asset class.
Equally weighting could neutralize investors’ biggest handicap: emotions. It also disciplines you to invest in asset classes that you might otherwise overlook. There, then may be two choices for investors: learn to accurately and consistently predict the future, or equally weight.
