The future of investment management

Looking at the present and at 35 years in the investment management field has produced the six observations and conjectures in this article: The correct portfolio for any investor is global (with a distinction between currency exposure and asset exposure), and global asset trading will eventually be continuous, 24 hours; "momentum investing" is an oxymoron; the model inputs reflecting our fundamental expectations are often irrational; investment management fees must drop significantly; the lumpiness and discontinuities in the market provide opportunities but frighten most investors; and past investment results are largely random noise with no predictive value. © 2005, CFA Institute.