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Essays: 184 988
 
03

2005 ? The Year in Review

   
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Title: 2005 ? The Year in Review
 
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Subject: Business
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Date: July 27, 1996
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Length: 5 / 1317
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During a difficult period for large stocks in general and last cycle's hero, large capitalization growth, the use of other asset classes was exceptionally and unusually valuable. As some investors jump in based on the numbers above rather than the long term logic of broad diversification, we can't help but worry about the fact that everything is cyclical and the current wave of acceptance presages the next period of trouble...
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While the theory and logic for broad diversification is and always will be sound, a cyclical downturn in results earned and perception is inevitable, and with every successful year, closer to reality. The way we see this unfolding is related to the fact that investors as a group have shifted their portfolios towards vastly higher fee structures without demanding commensurately higher levels of talent or opportunity for return...
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