I read an amazing book about portfolio allocation a few years back and reallocated my holdings. The thing that impressed me was a historical analysis which sho

I read an amazing book about portfolio allocation a few years back and reallocated my holdings. The thing that impressed me was a historical analysis which showed that, as long as you split your fixed income and equities, you would do quite well. The interesting thing was that you could split them sub-optimially and the whole thing would do well. Getting the proportion exactly right would get you a slightly better return, but much less than I expected. When the market is charging ahead, it might seem that holding bonds/fixed income might be a waste, but it's really just a form of insurance. Another interesting thing I learned was that holding inversely correlated things led to higher returns and less volatility. So an all-equity portfolio would generally have a slightly smaller return than one with even 5 or 10% fixed income. Anyways, the book was by a guy named William Bernstein, and his (very dated looking) site is at http://www.efficientfrontier.com/ http://www.efficientfrontier.com/. His book is called the Intelligent Asset Allocator. The first 2 chapters are on the author's site. The book can be ordered from Amazon at: https://www.amazon.com/product-reviews/0071362363/ref=cm_cr_dp_syn_footer?k=The%20Intelligent%20Asset%20Allocator%3A%20How%20to%20Build%20Your%20Portfolio%20to%20Maximize%20Returns%20and%20Minimize%20Risk&showViewpoints=1 https://www.amazon.com/product-reviews/0071362363/ref=cm_cr_...