Time Horizon

This is a major topic as I introspect about portfolio allocations. I usually make fun of Peter Schiff about being right about future calamity but losing 80% of his clients money. While that is a major lost if in 10 years, his year over year return is 1000% I should be writing him a check. The issue is time frame, investors are extremely short sighted, look at the rush to bond funds. While bonds deserve a place in every portfolio the large exodus into bond funds is showing investors short sightedness. Even if rates in the US stay low worldwide they will steadily increase. Who does not want 1000% return in two days, however trying to capture large moves in short time spans will lead to 100% losses.