State Run Plans DOA? Fiduciary’s Long Goodbye? and Products Trump Investments?
The results are in. Asset allocation doesn’t work in the long run. Rebalancing doesn’t produce better returns in the long run. In short, asset allocation as popularly practiced is myth.
Professor Lee’s research exposes two myths that make it critical for 401k plan sponsors to fully vet all the relevant research as part of their standard due diligence process.