Talk:Asset Allocation/United States

Goal / Purpose
To provide investors in regard to specific asset catagories if applicable: Default Risk, Average Annual Rate of Return, Standard Deviation, Average Beta of those Returns for a 5, 10, & 20 year time frame (full market cycle) and corresponding  Indices. Over all it is to help simplify an overly complex system.

Target Audience
Investors that wish to diversify thier portfolio using either passive or active investing approach.

Information Benefit
Even though I am getting very specific about the maturity for fix income based on a 5, 10, & 20 year scale. I would like the data set to be based on 20 years or more thus a full market cycle. As a result the need to update this information will not be necessary. In regards to the subjectivity of rates and other variable, it will have minimal inpact due to the longer time scale that is use for historic return based on each asset class.

Factors Impact

 * Factors such as management fees, stock selection and market timing do have an impact upon one's portfolio but more in a negative way than a positive way. Market Timing’s Flaw by Larry Swedroe The Evidence on Timing by Larry Swedroe
 * It has been proven that asset allocation can determine up to 94% of your rate of return. These are the following sources:
 * The Informed Investor Ch6 The Asset Allocation Decision by Frank Armstrong
 * Gary P. Brinson, Brian D. Singer, and Gilbert L. Beebower, "Determinants of Portfolio Performance II: An Update," Financial Analysts Journal, May/June 1991. (can not seem to find a link for this source, if you find one add it Paul.Paquette)
 * Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, Determinants of Portfolio Performance, Financial Analysts Journal, July/August 1986.
 * Does Asset Allocation Policy Explain 40%, 90%, or 100% of Performance? by Roger G. Ibbotson

Counter Argument
 * Bad Practices by William Jahnke

Comparative Study
 * The Asset Allocation Debate: Then and Now by The Vanguard Group 06/08/2005

Topics that should not be in the article

 * Different ways to allocate portfolio or techniques use based on some formula i.e. age.
 * Asset allocation rules, however an appropriate link is applicable.
 * Not an article about stress or stomach acid test.

Topics that should be in the article

 * How to determine an appropriate benchmark and type of benchmark, should be brief and concise.
 * Numerical in nature thus a data set that can be used by an informed investor.

Image copyright violation
This is mainly a notice to let the contributors of this Wikibook know that Image:Asset allocation.gif is a copyright violation. If you have any reason to believe that you had formal copyright permission granted to release this image under the terms of the GFDL or compatable licenses, I would ask you to please note those terms here on this page or on Image talk:Asset allocation.gif. This image will not be deleted immediately, but it will eventually have to go. --Rob Horning 07:39, 2 February 2006 (UTC)

Links
Maybe the links to wikipedia should be trimmed back a bit. Just about every time a dollar sign appears it is linked to wikipedia. This seems excessive, and i think it is a breach of policy. Those that stay should probaly be formetted in the form W: and then the name of the page on wikipedia. Dolive35 10:55, 25 April 2006 (UTC)