The Asset Allocation Hoax by William W Jahnke (1997)
The Asset Allocation Hoax by William W Jahnke 1997.pdf
SUMMARY: In this 1997 paper William Jahnke illuminated that the BHB study was a hoax. His debate appeared in the Journal of Financial Planning. Jahnke's primary criticism is that BHB's use of quarterly data dampens the impact of compounding slight portfolio disparities over time, relative to the benchmark. One could compound 2% and 2.15% quarterly over 20 years and see the sizable difference in cumulative return. However, the difference is still 15 basis points (hundredths of a percent) per quarter; the difference is one of perception, not fact. His point remains undisputed.
The Asset Allocation Hoax by William W Jahnke
Journal of Financial Planning. Feb 1997
