Elroy Dimson, Paul Marsh, and Mike Staunton have been publishing the following chart in their annual update for some time now and every single year it blows me away: The U.S. market share looks like Pac Man preparing to eat the rest of the world. Michael and I discussed some of the reasons for the U.S. dominance…
Asset Allocation
Who Owns All the Stocks & Bonds?
Jesse Livermore once said, “Another lesson I learned early is that there is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.” In other words, humans are the one constant in the markets and…
Asset Allocation For Investors With an Appetite For Risk
A reader asks: I recently started my first real job, and I am currently setting up my 401k. I am selecting my asset allocation. Using the website portfolio visualizer, I have been back testing different allocations. I came across an interesting portfolio that beats most of the allocations on the website (Sharpe ratio and CAGR)….
Where Risk Lies in a Balanced Portfolio
The Vanguard Balanced Fund (VBAIX) was down 4.73% in October. This was the worst monthly return for this 60/40 stock/bond fund since September 2011 when it fell 5.0%. The data for this fund goes back to 2001 so I looked at the worst monthly losses to get a sense of where this past month ranks….
