If a tree falls in the woods does it make a sound?  If a portfolio is consistent will anyone notice?

Many investors claim to believe in asset allocation while maintaining a long-term outlook.  Data shows otherwise.

The ‘buy high – sell low’ approach has always been a bane to investors who let their emotions get in the way of rationale decision making.  The unending (yet misguided) desire to compare returns to unthinking, arbitrary benchmarks over short periods of time is usually more damaging.

Returns in asset classes (and underlying securities such as stocks, mutual funds, ETFs, etc) develop over the entirety of the business cycle.  This can be many years.  Data for multiple years may suggest smart people suddenly became stupid and vice versa.  Reality is much different.

Those who truly believe in buying into smart philosophies and allowing them to play out over the entirety of the business cycle almost always come out ahead.  ‘Slow and steady wins the race.’

Here’s a fantastic article about portfolio consistency and the impact on long-term returns.