Looking at a benchmark like the S&P 500 can lead to numerous unhappy misinterpretations, including apple to orange comparisons; distraction from personal goals; and a failure to view one’s portfolio through the prism of asset allocation. This podcast (4:36) argues that advisors who choose an asset allocation that matches their client’s goals, and look at performance over a market cycle, are extremely likely to see an on-target return, and that a client who is educated about this is a happy client.
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