In a fascinating and brief commentary, author William J. Bernstein ponders how investment portfolios will look 50 years from now. Bernstein is an exponent of Modern Portfolio Theory and its emphasis on asset allocation. Some of his conjectures include:
There will always be bubbles and panics
Risk and return will continue to be joined at the hip
Equity investments should continue to offer higher returns than debt
Diversification will become even more important than it is now
Please click here for the full text of his commentary.