JOURNAL OF APPLIED BUSINESS AND ECONOMICS
A New Normal for Portfolios: Construction, Assessment and Evaluation
Author(s): Jeffry Haber
Citation: Jeffry Haber, (2012) A New Normal for Portfolios: Construction, Assessment and Evaluation," Vol. 13, Iss. 2, pp. 97 - 101
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The financial crisis found many investors questioning what went wrong and how they might structure their portfolio going forward to avoid similar catastrophe. Such re-examination has led to new buzzwords and what seems like new paradigms. An example is the new normal. Other frequently seen headlines deals with whether the endowment model is broken. This paper looks at the investing issues in portfolio construction, assessment and evaluation in terms of the “new normal” and the “broken endowment model” and finds that the new normal is no different than the old normal and the endowment model is actually the blind following and replication of a few industry leaders. Despite the ample rhetoric, nothing much has changed or will change.