Jan 14, 2011

Dave Rosenberg on rational portfolio allocation

I fielded an email the other day with the oh so original saying “Dave, you do realize that the market can stay irrational longer than you can stay solvent”. Well, yes, I do know that, but the reality is that we don’t want to be fully invested in anything that is irrational, and the reason we have an equities weighting is because there is the share of the market that we can identify as trading at multiples that seem sensible and .... rational.

~David Rosenberg, chief economist and strategist, "Breakfast with Dave", January 14, 2011

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