But it seems likely that the main driver is pessimism about the outlook for other asset classes.

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Based on his remarks, he has more enthusiasm for other asset classes such as buyout, where the bigger funds have adopted more LP-friendly fee structures as the sizes of funds go up.

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And that means T-bonds should outperform all the other asset classes for a while, as they have done this year, although obviously there will be periodic corrections.

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History will show that they could have achieved far greater returns for themselves and their children in other asset classes.

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Still, bond yields slid back over the 3% threshold to 2.95% as investors fled other asset classes grabbing for yield at any cost.

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The other three asset classes are for appreciation: U.S. stocks, foreign stocks and hard asset stocks.

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Valuations of private equity portfolios on average remain slightly positive for 2011 in stark contrast to most other asset classes.

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Investors in other asset classes also focused on the outlook for potential tapering in coming meetings.

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Assume for example that real estate has a relative advantage over other asset classes or a superior return potential over the long term.

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There are other asset classes available but three form the foundation for a solid portfolio.

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Glassman Wealth Services Historical Returns Chart In other words, the same asset classes that have hurt portfolios this year have been earning impressive returns for the prior 15 years.

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