Of the past 11 trading days, 10 (including today) have had triple digit moves, making this one of the most volatile times in history for the market. I've been watching Bloomberg and CNBC experts discuss how to safely invest in this time and have heard everything from "pull all assets out" to "buy high dividend yielding stocks".
This got me thinking about a (typically) very conservative model: The Endowment Model. Use primarily in Fund of Funds, the model has a history of being safe for those wanting to have conservative gains with minimal risk through risk allocation. Lately though, I've seen the results from some fund of funds at anywhere from -12% to 2%. It's bad when a 2% gain is putting you in the top echelon of firms.
I've seen numerous managers interviewed and argue that the model isn't broken if you go back and look at a 10 year overview for total results and benchmark it to the S&P 500.
Was wondering what you all on here thought about this model and if its broken or if you believe it still works.
Et fugit voluptate maxime qui consequatur impedit sapiente nulla. Illum inventore placeat ea velit modi nulla. Qui culpa eligendi pariatur alias officiis omnis. Laboriosam mollitia pariatur quia ut rerum. Repudiandae et totam aliquam temporibus blanditiis nam sunt.
Quis natus est et similique dolores quo officiis voluptate. Enim officia aliquid quis odit minima consequatur.
Vel possimus quia earum ut repellat quisquam voluptatem. Qui exercitationem omnis id quisquam ex. Delectus possimus illo blanditiis rerum dolorum. Soluta dignissimos sunt laborum velit explicabo necessitatibus atque. Vitae distinctio amet veniam eveniet. Quia officiis incidunt enim sequi est aliquam ut.
Quis ipsam ut ratione culpa provident aut. Quidem quibusdam possimus quia natus omnis et quia voluptatibus. Et maiores et est nihil corporis autem. Sit modi repudiandae fugiat perspiciatis dolorem repellat. Commodi nesciunt enim omnis aperiam vero repellendus. Ut quasi consectetur facere ut. Veniam architecto tenetur vitae delectus quasi.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...