Since the Great Depression in 1926, we haven't seen such awful returns for balanced investors. 12 month returns this year, for people who are 100% in stocks, were actually better than those who are 50/50, 60/40. The bonds are the problem. Diversified portfolios have had a stunningly difficult year. Stocks didn't have a great year, but bonds really failed to cushion the blow. We're very fortunate with our portfolios that we reduced the duration, the weighted average maturity of the bond portfolios, so our clients haven't suffered anything like the average for a 60/40 investor. But despite that, it's been a bad year, and we know why: the era of cheap money is over. It's been going on for over a decade. Alan Greenspan, Ben Bernanke, all of these people, if ever the market turned down, print a little more money. Interest rates were low; we could get away…
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