
Ready for a portfolio shakeup? What to consider before making a move
Many Happy Returns
Portfolio Theory
It's the worst 20-year period for any period going back to 1970. In that sense, it's really useful because it's observed losses. And it's not using any fancy math. It's just saying, this is what happened. So in effect, you can throw different scenarios at it. You can kind of say, my portfolio is going to be 50% global equity and 10% long-term bonds. But then a crash comes and it knocks all of them. The kind of modern portfolio theory approach is you're trying to find assets which are negatively correlated. This means your portfolio does well, potentially, whatever the economic conditions. Because if you look at some portfolios working fairly
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