In this four-part blog series from Merriman Research, we’re offering our thoughts on the following important investment questions:
- When evaluating your investment returns, what benchmark(s) are relevant?
- What is the rationale for diversification?
- How should your investment time horizon be considered?
Investors may overlook the fact that these questions are highly interrelated. To properly consider any one, you must understand the context the other two foster. We’ll just have to jump right in to explain. If you missed Part 1, Part 2 or Part 3, start there and come back.
Part 4: Historic returns analysis supports diversification & longer time horizons
In this our fourth and final post of this blog series, we offer an assessment of historic index performance data. We expect that your better understanding of this history will contribute to your appreciation of the benefits of diversification and longer-term time horizons for your financial planning. (more…)