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Episode 65: Dr. Qian Wang, Vanguard economic and market outlook of 2024, host Rick Ferri

Bogleheads On Investing Podcast

NOTE

Asset Allocation and Long-Term Portfolio Strategy

The time-varying asset allocation model considers current market evaluations and focuses on maximizing the risk-adjusted long-term return of a balanced portfolio, based on a 10-year time horizon. It differs from tactical asset allocation by not focusing on short-term performance. The 60-40 global benchmark symbolizes diversification, but by taking current valuation into account, a 59% fixed income and 41% equity allocation can achieve the same expected return as the 60-40 benchmark but at lower risk, resulting in a higher risk-adjusted return.

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