Lazy Portfolios - 'Lazy Portfolios update good news 8...

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'Lazy Portfolios' update: good news 8 winners in bull and bear markets, best strategy for passive investors By Paul B. Farrell , MarketWatch Last update: 1:22 p.m. EDT April 8, 2008 ARROYO GRANDE, Calif. (MarketWatch) -- Now for the good news from the "Lazy Portfolios" files. While the rest of America is crying about the first quarter 2008 as "one of the worst three months in a decade," we've got eight great portfolios that keep winning in bear and bull markets. That's right, every one of our eight Lazy Portfolios beat the S&P 500 on all three performance benchmarks -- one-, three- and five-year returns. Every Lazy Portfolio beat the S&P 500's five- year average by at least 0.2 percentage points to as much as 6.2 percentage points, according to research by Morningstar Inc. This is impressive because not only are their asset allocations rarely changed, but some have been unchanged for almost a decade and still beat the S&P 500. Get it? These portfolios are virtually "zero maintenance!" Set them and forget them. Plus you can ignore Wall Street's relentless, misleading chatter about markets and the economy. Seriously. After customizing your own Lazy Portfolio you can ignore the news and focus on what's really important: your family, loved ones, friends, your career, hobbies, travel -- you name it -- anything but wasting time tracking and playing the market. How to set up your portfolio? Easy. Use our six basic rules in customizing your own Lazy Portfolio, beginning with our eight model portfolios below. The rules are simple, all derived from the Nobel Prize-winning "Modern Portfolio Theory:" 1. Asset allocation outperforms stock picking 2. Compounding builds long-term asset values 3. No-load index funds beat actively managed funds 4. Buy and hold, adding new money from savings 5. Market timing and active trading is a loser's game 6. Trust yourself, you're the expert, do-it-yourself Sound too simple? Well, that's what Wall Street will tell you: Especially all those brokers, active fund managers and commission-based advisers who love big fat commissions and fees that Jack Bogle says siphon off 30% or more of your returns. They hate Lazy Portfolios even though the evidence consistently proves that this is the best investment strategy for the vast majority of America's 95 million passive investors. The facts speak loudly. So please review each of the eight Lazy Portfolios below. Especially note that the number of funds in each portfolio varies from three to 11. Note also, their asset allocations vary, with equities ranging from 60% to 90%. And see how they're beating the S&P 500 benchmark on both a short-term and long-term basis: Portfolio Equi ty % No. of funds 1-year return 3-year annualized 5-year annualized
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return return Second Grader's Starter 90 3 -2.30% 8.91% 14.77% Aronson Family Taxable 70 11 0.32 9.33 14.64 Yale U's Unconventional 70 6 -0.42 9.64 14.08 Margaritaville 67 3 3.44 9.47 14.03 FundAdvice Ultimate Buy & Hold 60 11 2.70 9.84 13.98 Dr. Bernstein's No-
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Lazy Portfolios - 'Lazy Portfolios update good news 8...

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