However, investors generating fabulous returns in recent years would do better to credit central banks than the person in the mirror.
(Mar 6): The cocktail party scene must be unbearable these days. If there were ever a time to brag endlessly about portfolio profits, this is it. Stocks have had a massive rally with many indexes sitting at or near all-time highs. Bonds have climbed on falling interest rates and credit spreads — both within spitting distance of all-time lows.
The standard 60% stocks / 40% bonds portfolio is killing it — with relatively low volatility no less — an enviable Sharpe Ratio, the consultants tell us. Building a top-notch portfolio, which used to be considered fairly difficult, is starting to look pretty easy.
