Risk Controlled Portfolios
Successful risk-controlled portfolios are built to thrive in all market conditions. They are balanced not only between the two major asset classes – equities and fixed income – but also across all of the equity market sectors in the domestic and international economy.
The basic principal behind balanced portfolios is that no one knows the future, and therefore no one can predict which market sectors will do well or poorly in any time period. History is not predictive, but it is illustrative, and it is very clear that the best performing sectors one year can be the worst the next.
The Callan Periodic Table of Investment Returns 2001–2020