Beyond Diversification: What Every Investor Needs to Know About Asset Allocation

Conclusion

Finance evolves constantly. It provides endless intellectual satisfaction to those who study it and move it forward.

—JPP

THE PROFESSOR LOOKED AT HIS STUDENTS WITH AN intense gaze. Silence. He knew how to use pauses to captivate his audience.

“Let me ask again,” he said. “What does this mean?”

Another pause. He pointed at the blackboard behind him, which was full of quasi-indecipherable equations and numbers. “Think!” he said. “You’re here to learn to use your judgment, not just memorize things!”

Another pause. He pointed to his right temple and repeated this mantra about judgment in almost every class, but the bottom line is that most students were a little scared of his reactions when they gave the wrong answer. That day, no ...