Quote:
Originally Posted by Dean2
NO historical measure, growth, Beta, Alpha etc. predicts future behaviour. Yes there are events that can make a low Beta stock into a high Beta stock, and yes a real low Beta may just be an indication that the stock hasn't done anything for a long time. All that said, if you go into a major correction with a 2.0 Beta portfolio you are going to be one really unhappy camper because the Beta isn't likely to get better through the drop.
Guy can't look at just one or even a few variables to decide what a prudent portfolio construction is. If it was simple anyone could do it, and from long experience I can guarantee there are a lot less people good at it than bad at it. I can also guarantee that many of the so called professionals are almost as bad as the amateurs. Finding a really good advisor is like finding a B&C 200 point Typical Whitetail.
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Not wanting to argue with you. All I am trying to point out is that on average, unless you are an index investor, you are going to find that your portfolio has fallen more than the market if you are fully invested only in stocks.