If you can look into the seeds of time,
And say which grain will grow and which will not,
Speak then to me . . .
—BANQUO, Macbeth, ACT I, SCENE 3
Don’t you hate it when you’re looking over a too-huge menu, ask the waiter for recommendations, and he helpfully replies, “Everything here is good”?
We’re going to try to be a bit more constructive. The previous four chapters suggested strategies for the main four investment jobs, an à la carte approach. Here we’ll step it up a notch and talk about combining investments into a lovely, complete dinner—a panoramic, risk-tolerant portfolio.
As you know, the thinking about portfolio construction has evolved very far from the old 60/40 approach. The big advance was the endowment ...