Thread by @trengriffin

Some investors believe this Cardi B lyric is about asset allocation:

"I don't dance now, I make money moves."

If the drop in asset prices over the last month or so has resulted problems like loss of sleep and stomach problems, you gotta get your asset allocation right.

Outcomes that fit the Lil Wayne lyric:

"Cash Money is an army"

are products of smart asset allocation decisions that took place long *before* this stock market correction. You get zero points for doing asset allocation after a correction. You can't predict but you can prepare.

"Asset allocation is overwhelmingly important in terms of the results you achieve. Studies show that asset allocation is responsible for more than 100% of the positive returns generated by investors.” David Swensen.

"It’s time for us to start making some changes.” Tupac

"Diversify your millions, you can live off the interest / Make every revenue stream flood, see where it took me.” Xzibit
google.com/amp/s/genius.c…

"And cause this [asset allocation work] is Long Term 2" The time to raise cash is before Mr. Market is depressed. Calibrate.

If you want help getting through this or any other correction listen to David Swensen on asset allocation (or read the transcript) oyc.yale.edu/economics/econ… "In a panic, only two things matter: risk and safety. [We] saw this in 1987, saw it in 1998...."

"...it’s not really a law of finance that asset allocation dominates returns, it’s a behavioral result of how it is that we as individual investors, or we as institutional investors, manage our portfolios." David Swensen

The holiday card I received yesterday from Abigail Johnson of Fidelity has a hand written note requesting that I write a full blog post on Cardi B's views on the impact of fees and expenses on investment returns in 401(k) plans.