Asset Allocation using Index Funds, aka Benchmarks
By Henry Wirth
How to use them to beat the market:
If you are an investor there are two possibilities:
Possibility Number 1
You are outperforming appropriate benchmarks, either absolutely or on a risk adjusted basis. If you are outperforming, then you deserve to be congratulated. You may continue doing whatever you were doing, secure in the knowledge that your efforts are adding value to appropriate benchmarks.
Possibility Number 2
You are NOT outperforming appropriate benchmarks. If not, then you may wish to examine your current strategy because these strategies are easy to implement, they are tax efficient, they have ultra low expenses, and they have reasonably sustainable performance.
Go to Asset Allocation for a PDF file of the latest presentation of this strategy. It was made on October 26, 2011 as one of the "Ten Things Every Investor Should Know" series that is featured by the Financial Planning Special Interest Group.