The Flexible Investing Playbook: Asset Allocation Strategies for Long-Term Success

Chapter 6. Keys to Successful Asset Allocation

THE "NEW NORMAL"

After 2008, many market commentators began to discuss some-called the "new normal." The idea is that for investors, what they once knew as normal or typical market, investor, and consumer behavior had been replaced by something very different. From what I've seen from my perch so far, I cannot argue with that.

However, that does not mean that we throw in the towel. It does mean that we change the playbook, back to one that has not been used during most investors' lifetimes. The good news is that in using this new playbook, the players are faster and stronger. That is, the tools we have at our disposal to execute those plays are more plentiful. If you learn how to use them, you can survive whatever comes at us from here, including a surprise return to the old normal, should that occur at some point. Most importantly, you can do better than survive—you can thrive. That's what this book is about.

Earlier, we reviewed some of the most important issues for investors today. We then saw that Wall Street may help or hinder as you seek to address those issues. In this chapter, I provide my opinions, beliefs, and structural guidance on how an investor can greatly increase his chances of investment success in the twenty-first century.

One of the most important pieces of guidance I've ever received is that there are some things in life that we can control and some that we can't. At least once a week, something happens to remind me ...