## Search found 578 matches

- Mon Jun 19, 2017 4:15 pm
- Forum: Investing - Theory, News & General
- Topic: Is accelerating an equities glide path a market timing strategy?
- Replies:
**1** - Views:
**252**

### Re: Is accelerating an equities glide path a market timing strategy?

Just to contrast your proposal. What if, instead, you decided on the actual future glide path of AA as a discrete AA for each year in the future? Like at age 60 (or 5 yrs. b4 retirement, or some such) you are 35/65, age 65 you are 40/60, age 70 you are 45/55, age 75 you are 50/50, etc. Then rebalanc...

- Sun Jun 18, 2017 4:29 pm
- Forum: Investing - Theory, News & General
- Topic: Safemax with varying AA
- Replies:
**41** - Views:
**2041**

### Re: Safemax with varying AA

{...snip...} For a given portfolio, you calculate the annual returns for that year. For a portfolio that is 50/50 that just means you take the average of equity & bond returns for that year. Once you have a sequence of portfolio returns, there's a formula for calculating the maximum you can wit...

- Sun Jun 18, 2017 4:27 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

One more trying of your infinite patience. Since all examples in the page explain a two time period compound return (and how it is not the arithmetic addition of returns), who would/wouldn't concede that a better title would be "Compounding Percentage Gains and Losses."? To me it would. E...

- Sun Jun 18, 2017 4:07 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

One more trying of your infinite patience. Since all examples in the page explain a two time period compound return (and how it is not the arithmetic addition of returns), who would/wouldn't concede that a better title would be "Compounding Percentage Gains and Losses."? To me it would. E...

- Sun Jun 18, 2017 3:56 pm
- Forum: Investing - Theory, News & General
- Topic: Larry Swedroe: Persistent Returns Remain Elusive
- Replies:
**15** - Views:
**2352**

### Re: Larry Swedroe: Persistent Returns Remain Elusive

TD2626 wrote, A black swan is an unexpected event. By nature, no one can predict it. If it was predictable, it would not be a black swan. We've never had a scenario where there was >50% indexing so we can't predict what would happen. Wouldn't index funds just sell(buy) all securities they hold equal...

- Sun Jun 18, 2017 3:44 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

One more trying of your infinite patience. Since all examples in the page explain a two time period compound return (and how it is not the arithmetic addition of returns), who would/wouldn't concede that a better title would be "Compounding Percentage Gains and Losses."? To me it would. Ex...

- Sun Jun 18, 2017 3:01 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

No concern. The intent was for the fine edge of who and what this is for.

- Sun Jun 18, 2017 12:41 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

Yea. Afterwards, per siamond's comment, and others'. This reeks of compound growth and anticipation of compound growth. If it were about the title, it would just be about converting percentage notation into equivalent decimal and fractional notation as a multiplication or division factor (or operati...

- Sun Jun 18, 2017 12:30 pm
- Forum: Investing - Theory, News & General
- Topic: A bit more on Tontines
- Replies:
**8** - Views:
**1255**

### Re: A bit more on Tontines

So the rate of patent applications on tontine ideas is rising? I won't hold my breath, though. Interesting about the re-naming a kid with a deceased kids name (the beneficiary.) Never heard that one, myself. Guess they were enrolling their kids in the tontine in hopes of getting a long-term benefit....

- Sat Jun 17, 2017 9:18 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

Re-submission. Percentages are actually a multiplication operation. 1st, the percentages must be converted to a decimal or fractional representation. +10% is equivalent to a decimal multiplication of 1.1 -10% is equivalent to a decimal multiplication of 0.9 And then you can see how a gain of 10% fol...

- Sat Jun 17, 2017 9:04 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

^^^ Thanks! I would use two different numbers than 10% for P1 and P2, such as 7% and 11% because then they could not be mixed up. And the new numbers are prime numbers. I would agree, but I'm trying to accommodate those who don't work with math on a daily basis. Take easy first steps, but learn the...

- Sat Jun 17, 2017 8:30 pm
- Forum: Investing - Theory, News & General
- Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
- Replies:
**90** - Views:
**8182**

### Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

Almost 2 yrs. ago, listening to tips from this board, I saw my main goto for short term( VFSTX VG short term IG) looking like a loss for the rest of the year. I bought 1 yr(1.25), 2 yr(1.45) and 3yr(3.0) CDs for my laddered income as starting withdrawals. Good move. I also found my local CU that pay...

- Sat Jun 17, 2017 4:57 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

For buy and hold, it's compounded Pf = Pin(1+r1)(1+r2) ... (1+rn) For arithmetic you set up a separate cash account that pays nothing. Every time you have a gain you put it in the cash account. Every time you have a loss you take it from the cash account and re-invest it. Pf + cash = Pin[(1+r1 + r2 ...

- Sat Jun 17, 2017 4:28 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

I wonder if the wiki could better use an article on compound returns vs. arithmetic returns which would include this compound growth of percentage gains/losses? Compound return is for 'buy and holders', generally. Arithmetic returns are for those who 'spend their returns', generally. And then there'...

- Fri Jun 16, 2017 6:13 pm
- Forum: Investing - Theory, News & General
- Topic: Volatility and Arithmetic mean returns
- Replies:
**4** - Views:
**345**

### Re: Volatility and Arithmetic mean returns

Using excel I get: 1.055230398 =AVERAGE(23/24,26/23,28/26) 1.0527266 =GEOMEAN(23/24,26/23,28/26) 0.005171771 =VARP(23/24,26/23,28/26) 0.071915026 =STDEVP(23/24,26/23,28/26) If you are looking for the (approximate) relationship between arithmetic mean, geometric mean and standard deviation see http:...

- Fri Jun 16, 2017 4:38 pm
- Forum: Investing - Theory, News & General
- Topic: Volatility and Arithmetic mean returns
- Replies:
**4** - Views:
**345**

### Re: Volatility and Arithmetic mean returns

Using excel I get: 1.055230398 =AVERAGE(23/24,26/23,28/26) 1.0527266 =GEOMEAN(23/24,26/23,28/26) 0.005171771 =VARP(23/24,26/23,28/26) 0.071915026 =STDEVP(23/24,26/23,28/26) If you are looking for the (approximate) relationship between arithmetic mean, geometric mean and standard deviation see http:...

- Fri Jun 16, 2017 3:59 pm
- Forum: Investing - Theory, News & General
- Topic: Volatility and Arithmetic mean returns
- Replies:
**4** - Views:
**345**

### Re: Volatility and Arithmetic mean returns

Using excel I get: 1.055230398 =AVERAGE(23/24,26/23,28/26) 1.0527266 =GEOMEAN(23/24,26/23,28/26) 0.005171771 =VARP(23/24,26/23,28/26) 0.071915026 =STDEVP(23/24,26/23,28/26) If you are looking for the (approximate) relationship between arithmetic mean, geometric mean and standard deviation see http:...

- Fri Jun 16, 2017 7:13 am
- Forum: Investing - Theory, News & General
- Topic: Safemax with varying AA
- Replies:
**41** - Views:
**2041**

### Re: Safemax with varying AA

Not non-sensical in my view at all. It's been my starting approach, and still generally my way, what with the step in income upon taking SS. My two links, yes were the VPW and Simba backtest data threads, but I meant to try a search for 'TIPS' at the top box on those threads. Much effort and discus...

- Fri Jun 16, 2017 7:03 am
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

I didn't read the entire thread or the whole wiki article, but some things in the article don't seem correct. Question: When is this equation true? P + (10%) - (10%) = P. Answer: It's never true. The 10% can't "float" by itself. It refers to 10% of what? If you say: P + (10% of P) - (10% ...

- Fri Jun 16, 2017 6:12 am
- Forum: Investing - Theory, News & General
- Topic: Volatility and Arithmetic mean returns
- Replies:
**4** - Views:
**345**

### Volatility and Arithmetic mean returns

Arithmetic mean return ; start and yr ending values data set: (2400, 2300, 2600, 2800) A.M.R. = Geom. mean return = CAGR Var. = [(1+r1)^2 + (1+r2)^2 + (1+r3)^2]/(1+A.M.R.) = [(23/24)^2 + (26/23)^2 + (28/26)^2]/1.0527266 = 3.187958668 SD = SQRT(Var.) = 1.785485555 Geom. mean return (CAGR) = nth root ...

- Fri Jun 16, 2017 5:32 am
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

To get back on track; aren't we supposed to be saying: Arith. mean return = (Pf/Pin - 1) * (1/n data points) ; data(2400,2500,2600) , A.M.R. = ((2600/2400) - 1) * 1/2 = .4.167% avg. ret. Geo. mean return = nth root(Pf/Pin) - 1 ; SQRT(2600/2400) -1 = 4.08329% CAGR Arith. mean value is totally someth...

- Fri Jun 16, 2017 3:34 am
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

To get back on track; aren't we supposed to be saying: Arith. mean return = (Pf/Pin - 1) * (1/n data points) ; data(2400,2500,2600) , A.M.R. = ((2600/2400) - 1) * 1/2 = .4.167% avg. ret. Geo. mean return = nth root(Pf/Pin) - 1 ; SQRT(2600/2400) -1 = 4.08329% CAGR Arith. mean value is totally somethi...

- Fri Jun 16, 2017 2:54 am
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

post from the 'volatility drag' thread: The arithmetic mean is the arithmetic average of multiplications. :confused . See wiki on variance drain: https://www.bogleheads.org/wiki/Variance_drain. See the 2nd link from the 1st post in this thread: http://www.investinganswers.com/education/how-invest/ca...

- Fri Jun 16, 2017 2:49 am
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

The arithmetic mean is the arithmetic average of multiplications. :confused . See wiki on variance drain: https://www.bogleheads.org/wiki/Variance_drain . See the 2nd link from the 1st post in this thread: http://www.investinganswers.com/education/how-invest/cagr-vs-average-annual-return-why-your-ad...

- Fri Jun 16, 2017 2:31 am
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

Wait a minute. Isn't that equation for volatility drag?

Anyway. These equations : Geo mean = Simp mean - 1/2 SD^2 ?? = 50 ?

Oh. I see. The data are percentages? .

Anyway. These equations : Geo mean = Simp mean - 1/2 SD^2 ?? = 50 ?

Oh. I see. The data are percentages? .

- Fri Jun 16, 2017 1:35 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
- Replies:
**90** - Views:
**8182**

### Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

Yep. VMMXX climbing pretty quick. Looked at distrib. That yield was about .7% 1st of year.

Should see 1 mo and 3 month change in yield on 3 mo. US treas.:

http://quotes.wsj.com/bond/BX/TMUBMUSD03M .

Should see 1 mo and 3 month change in yield on 3 mo. US treas.:

http://quotes.wsj.com/bond/BX/TMUBMUSD03M .

- Fri Jun 16, 2017 12:20 am
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

Simp = expected simple average return of portfolio Geo = expected geometric (compound) average return of portfolio We can look at the expected effect of different volatilities on two portfolios with same expected return. Geo1 = Simp1 - 1/2 SD1^2 Geo2 = Simp2 - 1/2 SD2^2 To see effect of changes in ...

- Thu Jun 15, 2017 10:11 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

But I'll ask on one smallish addition to it, if it could be changed. There is no direct mention using the phrase 'percentages are a ratio', which is mentioned a lot in threads. My idea on this is "can this phrase be create confusion over and over by what number belongs in the denominator? When ...

- Thu Jun 15, 2017 9:39 pm
- Forum: Investing - Theory, News & General
- Topic: Safemax with varying AA
- Replies:
**41** - Views:
**2041**

### Re: Safemax with varying AA

I of course have a similar plan, and I'm trying to see how it fits with the traditional SAFEMAX SWR concept. Will flooring with TIPS from retirement age of 60 to SS at age 70 (happens to be the first 10 years of retirement) also result in higher SWR, as viewed through the traditional SWR withdrawal...

- Wed Jun 14, 2017 9:33 am
- Forum: Investing - Theory, News & General
- Topic: Safemax with varying AA
- Replies:
**41** - Views:
**2041**

### Re: Safemax with varying AA

Finally, once one achieves a secure FR, one can do any thing with the excess assets. For me, I acquired more equities in Discretionay acct (rising equity portfolio in retirement, see threads on this). :greedy I of course have a similar plan, and I'm trying to see how it fits with the traditional SA...

- Tue Jun 13, 2017 6:29 pm
- Forum: Investing - Theory, News & General
- Topic: Top and bottom of AA usefulness
- Replies:
**19** - Views:
**1570**

### Re: Top and bottom of AA usefulness

Playing with firecalc.com: About $3.76 million invested as 100% 5-yr. treasuries, has a 95% success, historically, over all 30 year periods since 1871, to payout, inflation adjusted, $100,000/ yr. At 100% invested in total US stocks, $2.64 million starting portfolio does it. (30 yrs, 95% success, $1...

- Tue Jun 13, 2017 3:52 pm
- Forum: Investing - Theory, News & General
- Topic: Bogle Doubles Down on US Index Funds
- Replies:
**118** - Views:
**11854**

### Re: Bogle Doubles Down on US Index Funds

My main complaint about buying foreign stocks is that it comes with currency risk, yet the market doesn't reward investors for taking on that additional risk. Currency risk is not a risk for long term investors Yea. But doesn't every long term end in a short term? There is a vanguard paper (too laz...

- Tue Jun 13, 2017 3:34 pm
- Forum: Investing - Theory, News & General
- Topic: Bogle Doubles Down on US Index Funds
- Replies:
**118** - Views:
**11854**

### Re: Bogle Doubles Down on US Index Funds

am wrote:Stormbringer wrote:My main complaint about buying foreign stocks is that it comes with currency risk, yet the market doesn't reward investors for taking on that additional risk.

Currency risk is not a risk for long term investors

Yea. But doesn't every long term end in a short term?

- Tue Jun 13, 2017 1:01 pm
- Forum: Investing - Theory, News & General
- Topic: Safemax with varying AA
- Replies:
**41** - Views:
**2041**

### Re: Safemax with varying AA

Finally, once one achieves a secure FR, one can do any thing with the excess assets. For me, I acquired more equities in Discretionay acct (rising equity portfolio in retirement, see threads on this). :greedy I of course have a similar plan, and I'm trying to see how it fits with the traditional SA...

- Tue Jun 13, 2017 12:32 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

In other words, is a 50% needing a 100% gain, and a continual sequence of + and - 10% change, a math concern, or an asset valuation concern? Sure, it's looking at the riskiness here, but that is not a math concern, it's an asset valuation/risk/return concern. If an asset has a certain earnings and e...

- Tue Jun 13, 2017 12:12 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

When the market takes a large negative swing, recovery will take a longer time because the market needs a larger percentage increase to get back to the same point. Are you sure about that? Ron As Ron alludes to, if The Market fundamentally worked as some sort of percentage driven machine, like CDs ...

- Mon Jun 12, 2017 9:35 pm
- Forum: Investing - Theory, News & General
- Topic: [Wiki] - Percentage Gain and Loss (for new investors)
- Replies:
**115** - Views:
**5811**

### Re: [Wiki] - Percentage Gain and Loss (for new investors)

How's this? Percentages can be misleading if not combined correctly. Maybe a common quick error or fallacy people make is making the assumption that percentages can be added and subtracted. But they are actually a multiplication operation. When is this equation true? P +10% -10% = P. When would you ...

- Sun Jun 04, 2017 5:11 pm
- Forum: Investing - Theory, News & General
- Topic: Simulators, Reality, and Motiviation to Stay the Course
- Replies:
**13** - Views:
**1209**

### Re: Simulators, Reality, and Motiviation to Stay the Course

Thinking about the past--20 and 30 years ago?, and after mutual fund cos. and plan providers started getting their own websites, I remember only simulators that you entered age, savings rate, and expected return (maybe inflation later.) We would always play trading off between saving more vs making...

- Sat Jun 03, 2017 1:18 pm
- Forum: Investing - Theory, News & General
- Topic: Simulators, Reality, and Motiviation to Stay the Course
- Replies:
**13** - Views:
**1209**

### Re: Simulators, Reality, and Motiviation to Stay the Course

Thinking about the past--20 and 30 years ago?, and after mutual fund cos. and plan providers started getting their own websites, I remember only simulators that you entered age, savings rate, and expected return (maybe inflation later.) We would always play trading off between saving more vs making ...

- Wed May 31, 2017 5:24 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

RW, I disagree. If volatility is reduced then the arithmetic mean is brought down towards the geo. mean. Volatility should be measured as the deviation from the ongoing geo. mean (or the expected mean.) btw, if you can't show this is wrong, then that mean's I'm right. Try. MIPreretirey, Set up a fe...

- Wed May 31, 2017 3:36 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

MIPreretirey, Set up a few random return series in Excel. I think the functions are rnd, norm dist. Create different series of annual returns over 20-30 years with the same Mean return but different standard deviations. The greater the SD, the bigger the difference between the simple Mean and the g...

- Wed May 31, 2017 1:51 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

RW,

I disagree. If volatility is reduced then the arithmetic mean is brought down towards the geo. mean.

Volatility should be measured as the deviation from the ongoing geo. mean (or the expected mean.)

btw, if you can't show this is wrong, then that mean's I'm right. Try.

I disagree. If volatility is reduced then the arithmetic mean is brought down towards the geo. mean.

Volatility should be measured as the deviation from the ongoing geo. mean (or the expected mean.)

btw, if you can't show this is wrong, then that mean's I'm right. Try.

- Wed May 31, 2017 11:00 am
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

Edit:

I probably shouldn't sidetrack this with additional ?s . Just say I don't know enough to know I don't know.

I probably shouldn't sidetrack this with additional ?s . Just say I don't know enough to know I don't know.

- Wed May 31, 2017 10:19 am
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

I was just going to add about the 2 assets mixed, and non-correlation. True, but I can just say I'm on the fence and leaning toward correlations are unpredictable. And seems this could add another derivative of non-predictability which is larger and which could [u]add to total volatility. Maybe.[/u]...

- Wed May 31, 2017 9:56 am
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

Random, I have newer thoughts on this re. geo ret. vs arith. I just knew that the geo return over multiple periods (time) was the geo equivalent of a straight line ( the same ret yr after yr.), and that the end result of varying returns (volatility) resulted in a mean (geo) return. But the mean arit...

- Fri Mar 10, 2017 10:16 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

MIPreretirey, I understand that math. Do you agree that a more volatile portfolio with same average return will have lower terminal value than less volatile portfolio with same average return? Dave Nope. Because the arithmetic average is not the CAGR. (the geometric mean/average.) The volatility ho...

- Fri Mar 10, 2017 9:40 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

Random. Let me show you a tact of reason which I hope is useful and I can articulate it okay. Identity properties: The identity property of addition and subtraction says any number plus 0 = that number. Also stated: if the difference between two numbers = 0, then the numbers are equal. The identity ...

- Fri Mar 10, 2017 7:11 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

I found this link that explains what I'm talking about: http://swanglobalinvestments.com/2016/09/volatility-is-a-drag/ Dave Again, we start with a simple illustration. If one were asked which of the following three scenarios would yield the best ten-year results, one might be tempted to cho...

- Fri Mar 10, 2017 7:06 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

No, I'll happily remove all references to rebalancing bonus from the conversation. And purely focus on volatility. Which investment would you rather have: one that goes up 100% then down 50% giving you an average return of 25% or one that goes up 25% in two consecutive periods, also giving you an a...

- Fri Mar 10, 2017 5:34 pm
- Forum: Investing - Theory, News & General
- Topic: Do you think about volatility drag on your portfolio?
- Replies:
**206** - Views:
**11809**

### Re: Do you think about volatility drag on your portfolio?

This thread has bothered me from the start, and there were other threads. Just the term "volatility drag" makes me cringe. I was waiting for it to be realized that there is no such affect to actual $ returns. I thought, "Who on earth coined this term?" But here it is in the wiki....