Static or Dynamic Asset Class Allocations?

Success of dynamic asset class allocations assumes that expected asset class returns, return riskiness and investor risk aversion change at least somewhat predictably over time. Are individual investors truly better off with dynamic (rather than static) allocations? In their October 2024 paper entitled “Victor Meets the Bogleheads: Comparing Static versus Dynamic Asset Allocation”, Victor Haghani and James White focus on the modest differences between static and logic-driven dynamic allocation strategies. Based on their experiences as research analysts and investment managers, they conclude that: (more…)