I think it’s important for investors to understand the historical behavior of the investments they hold in their portfolios. This understanding helps investors maintain realistic expectations of their investments going forward (both good and bad), invest more appropriately, and remain disciplined through up and down years. “Remaining disciplined” means not chasing returns in good years while not fleeing your strategy in bad years. Continue reading “Bond and Stock Behavior Throughout History”
You Only Get One Shot
Did you know that you and a friend could put the exact same amount of money away throughout your careers, earn the exact same average annual return on your portfolio with the exact same volatility but end up with completely disparate portfolio values?