Always Get Back to the Car
You’ve identified what might lead to failure. Sometimes, the risk is too big and far outweighs any rewards. Always get back to your car.
You’ve identified what might lead to failure. Sometimes, the risk is too big and far outweighs any rewards. Always get back to your car.
As people (and investors) we need to find a balance between two competing thoughts: the realism of today’s circumstances, and the hope of long-term success.
Why do we keep discussing the 60/40 portfolio? Where did it come from? Why does it have so much staying power?
If a stock drops (-50%), it needs to grow +100% to breakeven. But…does this mean anything important to investors?
Are retiree’s who own bond funds setting themselves up for harm that a bond ladder could never inflict? Or is this six vs. half-dozen?
“The nature of human psychology is such that you’ll torture reality so that it fits your models.” Let’s not do that.