Investors Lose Billions In Traditional Asset Allocation Method
MARLBOROUGH, Mass., Jan. 11, 2022 /PRNewswire/ — The widespread practice of using an arbitrary asset allocation based only on investor risk tolerance was found to be flawed in several respects. Investors forfeit as much as 37.68%[1] of their returns in an attempt to limit temporary losses while failing to protect essential short term funds. In its new paper, DALBAR has suggested the practice of setting arbitrary asset allocations for investors to be imprudent, not in their best interest and potentially a breach of fiduciary duty....