Asset allocation isn’t everything, but it nearly is
Investment Insights is a series of economic and financial markets commentaries from AMP Capital's Chief Economist, Dr Shane Oliver and our Head of Investment Strategy, Jason Wong.
Key points
The perceived importance of asset allocation in driving investor returns faded from the 1990s as a result of high overall returns from most asset classes and relatively high correlations between bonds and shares.
However, the dismal returns of the last decade from global shares, a relatively constrained overall return outlook, increasingly wild swings in share markets and the return to more volatile economic cycles is serving to highlight the importance of asset allocation.
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