Leave a Comment:
2 comments
I’ve tried the Aberdeen Asset allocation game and provides really poor and misleading financial education. The questions are in the format (i) here’s the economic situation now & (ii) what asset allocation would you use. Personally, I do not see why the economic situation should be the main factor used for asset allocation. Shouldn’t it be one’s investment horizon, risk appetite and age?
ReplyHi Garrett,
I think the point of the game is more to tell you that different assets perform differently in different scenarios and that one should have a diversified portfolio. It’s more for the fun of it as it’s really difficult to market time economic situation, though in reality one may still choose to underweight/overweight certain assets based on economic situation.
You can try out the game with 100% equities compared to a diversified holding and see how it pans out.
The articles on the site does explain the asset allocation principle a bit.
Reply