Are AssetBuilder’s Investments Poised To Make A Move?

I stuck a thermometer in the snow before every race.

It might sound quirky.

But every cross-country ski racer did it. We checked the snow’s temperature before putting wax on our skis.

The right temperature-dependent wax gave us the perfect combination of kick and glide. But if we chose the wrong wax (which I often did) halfway through the race we wished we had stayed home.

Experienced ski racers got it right almost every time. Unfortunately, picking the stock market isn’t like that at all. We can’t pick investments based on the economic climate. The stock market finds a way to humiliate almost everyone.

Image by Pixabay

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Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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2 Responses

  1. Suki says:

    Hi Andrew,

    Is it reasonable to split your holdings into one’s national stock market low cost index tracker, a world stock market tracker/ ETF and a bond index fund. 1/3 each into those funds and re-balance annually.

    Or do you feel that AssetBuilders portfolios will provide, over the long term (>10 years) a better return because of means variance optimisation.

    • Suki,

      That’s an excellent question. Backtested studies suggest that something like mean optimization variance is superior. But backtests don’t always jibe with real life. There’s no way of knowing, for sure.

      Cheers,
      Andrew


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