Wikinvest Wire  Monday, July 13, 2009  Schwab in Barron's
Charles Schwab was featured in Barron's this weekend. It was not
an really an interview but there were a lot of quotes from him
on all sorts of things including portfolio construction and what
sorts of expectations investors should have.  8-10% equity
returns are not realistic, "we are building a vast reservoir of
inflation" perhaps 10% in a few years, 20 years ago he thought
15% was good for foreign exposure now it is more like 40%, "it's
better to invest in companies that are more commodity-based" and
he doesn't think about bonds in terms of the age rule of thumb
but then said that is a good rule of thumb--don't quite get that
last one.  I have also been in much of the same camp in terms of
portfolio construction and expectations.  Also addressed in the
article was Schwab's entry into the ETF space. They have started
the process and offering some funds seems inevitable but I have
to say I do not know what to make of Schwab, or for that matter
Pimco,