So, what's a person to do Factors that explain variation between portfolio performances. 4.6% Security selection.
{"Image DocumentName": "So, what\u2019s a person to do?Factors that explain variation between portfolio performances. 4.6% Security selection.", "Image ImageDescription": "91.5% Asset allocation. 1.8% Other factors. 2.1% Market timing. So, now what? Here\u2019s some insight from the professionals\u2026the people who spend all day investing other people\u2019s money. As shown, a study of pension plan managers\u2026who have millions of dollars to invest\u2026analyzed which factors had the biggest effect on a portfolio\u2019s overall performance. Was it security selection, like picking a hot stock? Nope. Was it market timing, like getting in on a good thing ahead of the crowd? Nope. By far\u202691 percent of the time to be exact\u2026pension plan managers said asset allocation was what underwrote their success. What can we take away from this? That a well-balanced approach goes much further than luck. Of course asset allocation is not an air-tight guarantee, it\u2019s just that common sense and discipline always serve you best. Brinson Study. Determinants of Portfolio Performance. Financial Analyst Journal May-June Past performance is no guarantee of future results. Using an asset allocation approach does not assure or guarantee better performance.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}