Who can you count on to “have your back” when things get tough?
In the investment markets, our entire system starts with the premise that things will get tough and job #1 is to “have your back”.
As I look around the competition, I see lots said about the asset allocation and the efficient frontier, but almost nothing about the effective frontier. Efficiency is great, as far as it goes, but it doesn’t cover your back. Smooth running machines are only good when they accomplish a task you want done. If they run efficiently, but never “get ‘er done”, than they are interesting theories, at best. When things get tough, theories don’t cut it. Someone has to “have your back.”
Try stock investing, etf investing, mutual fund investing or retirement investing without someone “having your back” and it doesn’t take too long to realize you left out the most important principle of investing – someone has to have your back.