http://biz.yahoo.com/usnews/080916/16_vanguard_ceo_index_inv...Rationalizations to keep customers long their funds, when the smart ones sold some time ago.Ten years is no longer long term - you have to look longer:markets tend to revert to their long-term averages. But how you think about long term, I think, has to be stretched further. And that really leads you to, I think, by far the most important thing: the power of diversification. I'm looking at 10-year numbers for stocks--[which have returned] roughly 4.5 percent .... Think about every period for last 25 years that we've gone through and how much better the diversified investor is than somebody who had all of his or her eggs in one asset class .... Sure, diversification is wonderful. The most diverse fund ever, VTSMX, is up 3.86% annualized with distributions re-invested over the last 10 years. That is a whopping 0.33% better than their money market fund. OK: 10 years is no longer "long term". And what is the difinition of "is"? Should we work on that too?
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