No. of Recommendations: 2
Read a few of the GTAA research / backtests and papers by Faber, Antonacci, et al. It's great diversification to plan an allocation to international stocks, both large caps and small caps, and to international real estate. The allocations can be based on relative momentum, or just absolute momentum against their 10 month moving averages.

Such a portfolio backtests extremely well for volatility reduction with total return approaching large caps - for long backtest periods.

Unfortunately, the S&P 500 specifically (US large caps) has beaten everything for almost every time period for the last 11 years. The big money and the 401K money goes to the safest bets, and it has flowed to the S&P 500 index.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.