Search found 2435 matches

by longinvest
Sun Sep 17, 2017 6:36 pm
Forum: Investing - Theory, News & General
Topic: The Difference Between Risk and Uncertainty
Replies: 38
Views: 2250

Re: The Difference Between Risk and Uncertainty

So far, the best definition of risk that I have read is the one given by Zvi Bodie in his book Risk Less and Prosper . The definition itself is short: Investment risk is uncertainty that matters. But, to better appreciate the nuances of this definition, here is the context (I underlined the essentia...
by longinvest
Sun Sep 17, 2017 4:27 pm
Forum: Investing - Help with Personal Investments
Topic: Bond return negative. CD or money market alternative.
Replies: 30
Views: 2968

Re: Bond return negative. CD or money market alternative.

Valuethinker, The closest we could come to is "because the Yield Curve normally has an upward or downward slope, the average bond yield in a fund is not likely to be a perfect estimate of the returns to the holder of that fund. " Is that a fair summary of your view? No, it isn't. Bond mathematics te...
by longinvest
Sun Sep 17, 2017 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Bond return negative. CD or money market alternative.
Replies: 30
Views: 2968

Re: Bond return negative. CD or money market alternative.

Valuethinker, It isn't when you buy the bonds, or when they redeem, it's the average return available to you as an average of those bonds? Otherwise, you have to believe that interest rates are sustainably going *up* over the term of the fund, or sustainably *down*? First, let me insist: a 10-year p...
by longinvest
Sun Sep 17, 2017 9:21 am
Forum: Investing - Help with Personal Investments
Topic: Bond return negative. CD or money market alternative.
Replies: 30
Views: 2968

Re: Bond return negative. CD or money market alternative.

Valuethinker, Valuethinker, The long run return of a bond fund is best estimated by the average yield to maturity of the bonds in that fund. A bond fund is similar to a CD ladder. One wouldn't estimate the long-term return of a CD ladder with its average yield to maturity; that wouldn't make sense. ...
by longinvest
Sat Sep 16, 2017 4:05 pm
Forum: Investing - Theory, News & General
Topic: Investing in a Low-Return World: Howard Marks' 6 options
Replies: 44
Views: 3710

Re: Investing in a Low-Return World: Howard Marks' 6 options

ah ok, and by fixed growth trend you mean a rate? if so how do you estimate that rate? And for example if during the last 9 years the return for stocks has been very high, wouldn't this suggest that future rate will be lower? No, the growth trend is a rate which is unaffected by current market cond...
by longinvest
Sat Sep 16, 2017 3:45 pm
Forum: Investing - Theory, News & General
Topic: Investing in a Low-Return World: Howard Marks' 6 options
Replies: 44
Views: 3710

Re: Investing in a Low-Return World: Howard Marks' 6 options

This strategy has a small contrarian element to it which leads to saving a bit less when the market is up (and expensive), and a bit more when the market is down (and cheap) without having to guess anything about it. Thanks for sharing. It seems to me that your approach is still based on the expect...
by longinvest
Sat Sep 16, 2017 3:25 pm
Forum: Investing - Theory, News & General
Topic: Investing in a Low-Return World: Howard Marks' 6 options
Replies: 44
Views: 3710

Re: Investing in a Low-Return World: Howard Marks' 6 options

My choice is different: 7. Ignore prognostics about future returns. Plan (and regularly re-plan) based on current portfolio size, current income, current age, target retirement age, and a fixed portfolio growth trend based on asset allocation (unaffected by current market conditions). In other words...
by longinvest
Fri Sep 15, 2017 6:44 pm
Forum: Investing - Help with Personal Investments
Topic: Bond return negative. CD or money market alternative.
Replies: 30
Views: 2968

Re: Bond return negative. CD or money market alternative.

Valuethinker, The long run return of a bond fund is best estimated by the average yield to maturity of the bonds in that fund. A bond fund is similar to a CD ladder. One wouldn't estimate the long-term return of a CD ladder with its average yield to maturity; that wouldn't make sense. CD investors k...
by longinvest
Sun Sep 10, 2017 7:40 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

Dear Leesbro63, What Longinvest is missing is that it's often NOT true that spending equals more happiness. Isn't the goal of life and retirement to be happy? For many, continuing to accumulate security and perhaps a legacy for adult kids/grandkids/heirs/charity adds to happiness. In fact, ramping u...
by longinvest
Sat Sep 09, 2017 5:04 pm
Forum: Investing - Theory, News & General
Topic: Variable Percentage Withdrawal (VPW)
Replies: 739
Views: 224098

Re: Variable Percentage Withdrawal (VPW)

In the thread Variable Percentage Withdrawal -> Before retirement Age I answered a question by forum member KlangFool about how to use VPW for retiring at age 57: KlangFool, Let's assume the portfolio is 1.5 million and the full retirement age for social security is 67 years old. A) The annual expen...
by longinvest
Sat Sep 09, 2017 4:57 pm
Forum: Investing - Theory, News & General
Topic: Variable Percentage Withdrawal (VPW)
Replies: 739
Views: 224098

Re: Variable Percentage Withdrawal (VPW)

In the thread Safe Withdrawal Rate -> 2% or lower I wrote a few posts related to VPW. I wrote an explanation of what happens when actual returns differ from VPW's internal growth trend : I'm not proposing that one change the rate embedded in the VPW spreadsheet, but was was wondering what the long-t...
by longinvest
Sat Sep 09, 2017 9:19 am
Forum: Personal Finance (Not Investing)
Topic: Variable Percentage Withdrawal -> Before retirement Age
Replies: 35
Views: 2988

Re: Variable Percentage Withdrawal -> Before retirement Age

KlangFool, Let's assume the portfolio is 1.5 million and the full retirement age for social security is 67 years old. A) The annual expense is 60K B) And, the social security income with a couple = 30K at 67 years old. This couple retires at 57 years old. My understanding is (10 years X 60K = ) 600K...
by longinvest
Wed Sep 06, 2017 8:29 am
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

Gilgamesh, A floor and side portfolio viewed as an overall portfolio is nothing but a significant portion invested in individual treasury bonds, and the remaining in bond fund and equities (so called, side portfolio). This overall portfolio has a certain overall AA ratio. A fully-sufficient inflatio...
by longinvest
Wed Sep 06, 2017 8:03 am
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

AlohaJoe, Here's an example of VPW and two "variants" that use a different value than the VPW default. You can see that (on the left hand side) even though they start out with very different withdrawal amounts they eventually converge to very similar amounts (on the right hand side). https://cdn-ima...
by longinvest
Wed Sep 06, 2017 7:42 am
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

Victoria, 1. In my simulation, I have a much higher total inflation-adjusted income in the last few years of my projected lifespan. It is a feature of the model? No, this is an artefact of backtesting over a period with higher market returns. Using the default spreadsheet settings but selecting 1948...
by longinvest
Wed Sep 06, 2017 6:51 am
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

Jimmyq, How does VPW know the actual market return? Don't you input that every Year? No. One only multiplies the portfolio balance with the predetermined withdrawal percentage according to one's age and the portfolio's asset allocation for the upcoming year. The beauty of it is that using the size o...
by longinvest
Tue Sep 05, 2017 8:06 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

Victoria, I did read the entire Wiki article and downloaded the spreadsheet. As they say, don't invest in anything you don't understand. But understanding is different when you passively read something and when you actually have to implement it. When I saw the table, I knew that the implementation w...
by longinvest
Tue Sep 05, 2017 7:50 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

KlangFool, 2) My point of this thread is to show that if the portfolio size is much bigger (50X) than basic annual expense, the portfolio's AA does not really matter. I just hope that the hypothetical retiree didn't work an extra 10 years at a job he hated to accumulate such a gigantic portfolio. He...
by longinvest
Tue Sep 05, 2017 7:35 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

Victoria, Ok! Sorry...I must be confusing the suggestions some have made of redoing it each year like you suspected...thanks! P.S: VPW of course knows actual market returns with my balance at the end of the year...duh!...sry for such a silly question lol I was confusing it, too. That's why I wrote m...
by longinvest
Tue Sep 05, 2017 6:52 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

How does VPW know the actual market return? Don't you input that every Year? No. One only multiplies the portfolio balance with the predetermined withdrawal percentage according to one's age and the portfolio's asset allocation for the upcoming year. The beauty of it is that using the size of the p...
by longinvest
Tue Sep 05, 2017 6:38 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

Gilgamesh, VPW, also requires market tracking (world) and withdrawal adjustment based on that...but longinvest does that "behind the scenes", so the end user doesn't have to do anything. VPW only requires a very approximate general long-term trend for bonds and stocks. This is not a prediction of fo...
by longinvest
Tue Sep 05, 2017 6:12 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

KlangFool, 2) My point of this thread is to show that if the portfolio size is much bigger (50X) than basic annual expense, the portfolio's AA does not really matter. I just hope that the hypothetical retiree didn't work an extra 10 years at a job he hated to accumulate such a gigantic portfolio. He...
by longinvest
Tue Sep 05, 2017 5:44 pm
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rate -> 2% or lower
Replies: 72
Views: 7563

Re: Safe Withdrawal Rate -> 2% or lower

KlangFool, Folks, Someone else is discussing portfolio construction for a very safe withdrawal. But, does that make any sense if your withdrawal rate is 2% or lower? Won't simple 60/40 portfolio works? There must be a gap in my thinking. For example, if the social security cover 50% of a person's re...
by longinvest
Mon Sep 04, 2017 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?
Replies: 23
Views: 1531

Re: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?

#Cruncher, When retirement comes and one begins collecting the $10,000 nominal pension, it makes no sense to try and keep track of a hypothetical side portfolio. Instead, if one's estimate of longevity, inflation, or real return changes dramatically, one should just re-translate the $10,000 nominal ...
by longinvest
Mon Sep 04, 2017 2:59 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

Paul, What's going on here? LPMs have a 20% failure rate The problem with LMP is that it underestimates the costs substantially. It does this by constructing unrealistic scenarios and not actually matching liabilities. https://medium.com/@justusjp/liability-matching-portfolios-have-a-20-failure-rate...
by longinvest
Mon Sep 04, 2017 2:35 pm
Forum: Investing - Help with Personal Investments
Topic: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?
Replies: 23
Views: 1531

Re: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?

Itstoomuch, I forgot to tell you about his wife, age 50, who will happen to survive to age 105... That's good know, so for 55 yo, the alternatives are what? Of course, there's the imperfect scenario presented above, trying to self-construct inflation increments for the fixed pension. It might work o...
by longinvest
Mon Sep 04, 2017 12:29 pm
Forum: Investing - Help with Personal Investments
Topic: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?
Replies: 23
Views: 1531

Re: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?

^ sure. LoL Annuitant receives into checking account $10,000 annual lump sum or $833/mn. I'm spending mine on junk food and toys. I've saved for too long to not enjoy some of the benefits. :sharebeer The fixed (non-COLA*) pension payment of someone retiring early at age 55, in a 2% inflation world,...
by longinvest
Mon Sep 04, 2017 12:10 pm
Forum: Investing - Help with Personal Investments
Topic: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?
Replies: 23
Views: 1531

Re: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?

You may want to compare that to the simplicity, in nominal dollars , of the approach I've proposed. My approach can be summarized as: At the beginning of each year , receive a nominal $10,000 pension payment, and: Add $3,600 of it to a dedicated portfolio. Set aside the remaining $6,400 into a savin...
by longinvest
Mon Sep 04, 2017 9:45 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

Gilgamesh, Longinvest Is there any issues in using rolling TIPS ladder. I know one cannot predict exact returns, but if one assumes zero return and use TIPS solely for inflation protection. Note to readers : We are discussing two distinct types of ladders, rolling and non-rolling . I'll assume that ...
by longinvest
Mon Sep 04, 2017 8:51 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

Justin, I guess I don't understand what portion is taken from the stable income versus the VPW. The wiki says your "base income" should come from the stable portion, which is the TIPS/CD ladder or an annuity. But it doesn't say what "base" means...is that the total of your required spending? The mai...
by longinvest
Mon Sep 04, 2017 8:09 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

Justin, So VPW is not really viable for retirees in their 30s like you said, correct? You should download the spreadsheet and look. The second thing it does it ask you how you are when you are retire. By default it uses 65 but you can set it to 50 or even 15 if you want. VPW has nothing that inheren...
by longinvest
Sun Sep 03, 2017 5:41 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

Victoria, I don't believe in back-testing. I prefer mathematics: find your VPW, use your asset value, multiply the two, and see if you can live with it. For the worst case assume that the equities can drop by 80% and design the asset allocation so that in the worst case the total is still adequate. ...
by longinvest
Sun Sep 03, 2017 4:58 pm
Forum: Investing - Help with Personal Investments
Topic: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?
Replies: 23
Views: 1531

Re: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?

My thought would be that an inflation adjusted pension is just a way of distributing pension income. Being inflation adjusted means the income stream would start smaller, and there is no guarantee that high inflation might be persistent in the future. In fact, any time when an insurance company is ...
by longinvest
Sun Sep 03, 2017 4:20 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

As we are discussing SWR vs VPW, I asked and got the permission of former forum member Cut-Throat to quote a private email he sent me. Former forum member Cut-Throat has participated to the design of VPW. He has started using VPW in 2014. His portfolio is extremely simple; he has put all of his reti...
by longinvest
Sun Sep 03, 2017 3:43 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

Gilgamesh, P.S: Having said that, if VPW calls for a large bond allocation to reduce volatility, then expected returns will be lower due to the low stock allocation. Thus, compared to 4% SWR with 50-60% stock allocation, the expected withdrawal amount with 4% SWR might be a larger dollar amount than...
by longinvest
Sun Sep 03, 2017 2:14 pm
Forum: Investing - Theory, News & General
Topic: What are you up YTD? [Year To Date]
Replies: 1462
Views: 260025

Re: What are you up YTD? [Year To Date]

TheTimeLord wrote:
Sun Sep 03, 2017 1:20 pm
I just got call from The Beardstown Ladies and they report the value of my portfolio has increased 14.17% YTD. Thanks ladies for the good news.
(I added the link)

:wink:
by longinvest
Sun Sep 03, 2017 1:15 pm
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

Victoria, Closer to the end you state "It is important to apply VPW on a balanced portfolio, one with a sufficient ratio of bonds (nominal and inflation-indexed) to reduce the volatility of both the portfolio and withdrawals." Do you assume or recommend any particular asset allocation for this portf...
by longinvest
Sun Sep 03, 2017 10:43 am
Forum: Investing - Theory, News & General
Topic: Variable Percentage Withdrawal (VPW)
Replies: 739
Views: 224098

Re: Variable Percentage Withdrawal (VPW)

Here's a post (and follow ups) I've written to illustrate how to build a workable retirement plan using VPW: ... snip ... One approach to build a workable retirement plan is to split it in two parts: (i) lifelong non-portfolio stable inflation-indexed income and (ii) variable portfolio withdrawals ....
by longinvest
Sun Sep 03, 2017 10:14 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

I'd be confident in a 4% SWR if the PE10 at retirement time was less than 15. But above 25? No way. I'll be shooting for a 2.5% or 3% SWR, separate from pension and SS. Using a 2.5% SWR is equivalent to investing almost 50% of one's potential VPW withdrawal ( 4.8% at age 65, 50/50 portfolio) into w...
by longinvest
Sun Sep 03, 2017 9:10 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces 4% rule podcast on Madfientist
Replies: 322
Views: 29994

Re: Michael Kitces 4% rule podcast on Madfientist

The first principle of our Philosophy is to Develop a workable plan . One of the best features of a workable plan is that it helps us relax. Threads about SWR seem to exhibit a lot of anxiety. I think that this is because SWR does not qualify as a workable retirement withdrawal plan. SWR is a withdr...
by longinvest
Sat Sep 02, 2017 8:04 pm
Forum: Investing - Theory, News & General
Topic: OSWAN: Optimum Sleep Well At Night retirement plan
Replies: 37
Views: 3077

Re: OSWAN: Optimum Sleep Well At Night retirement plan

KlangFool, longinvest, OP asked for feedback. And, we are providing our feedback. Fair enough. <<Maybe forum member TheTimeLord is one of those people who would be miserable if they retired, instead of continuing to work.>> If that is true, OP would not be talking about traveling and taking the vaca...
by longinvest
Sat Sep 02, 2017 7:31 pm
Forum: Investing - Theory, News & General
Topic: OSWAN: Optimum Sleep Well At Night retirement plan
Replies: 37
Views: 3077

Re: OSWAN: Optimum Sleep Well At Night retirement plan

OP, It is very simple. If you know that you only have 10 more years to live, would you work one more year? KlangFool KlangFool, Steve Jobs knew he was dying and I'm sure he had enough to retire. Yet he worked as long as he was able to. Warren Buffett was born 87 years ago. He still works as the CEO...
by longinvest
Sat Sep 02, 2017 2:48 pm
Forum: Investing - Help with Personal Investments
Topic: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?
Replies: 23
Views: 1531

Re: Any way to "translate" a fixed pension/annuity to an inflation adjusted one?

Let's say I had $100,000 a year for life as a fixed amount (paid monthly). How much could I spend to mimic an inflation adjusted portfolio and where would I invest the amount set aside? There is no perfect way to do this. But, if we make a few assumptions (unlikely to hold in real life), we can set...
by longinvest
Sat Sep 02, 2017 9:45 am
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4009

Re: Do you know your bond portfolio's REAL 12 month total return?

Bonds aren't cash investments. Unlike bank CDs and savings accounts, bonds have a fluctuating value. Sometimes, this value goes up, other times it goes down. A non-defaulting nominal bond is guaranteed to mature at par. But, its value fluctuates before maturity. These fluctuations are usually bigger...
by longinvest
Sat Sep 02, 2017 8:34 am
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4009

Re: Do you know your bond portfolio's REAL 12 month total return?

Here's an example Portfolio Visualizer link . We enter a 100% allocation to Vanguard Total Bond Market ETF (BND) and select the 12-month period spanning from September 2016 to August 2017 . https://s26.postimg.org/buij3hxxl/allocation.png The annual return 0.46% CAGR matches the growth of $10,000 to...
by longinvest
Sat Sep 02, 2017 7:15 am
Forum: Investing - Theory, News & General
Topic: Do you know your bond portfolio's REAL 12 month total return?
Replies: 61
Views: 4009

Re: Do you know your bond portfolio's REAL 12 month total return?

Right, but if I have it right, in order to get the "real" return of say TBM (VBMFX) you'd have to: -Select August 2016 to August 2017 as a time frame -Put in 100% VBMFX -then click on the annual returns tab - look for the inflation adjusted column. This would give 13 months return. To get 12 months...
by longinvest
Mon Aug 28, 2017 6:29 pm
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 160
Views: 6484

Re: Review with Me - Larry Swedroe's new book

For those interested into reading the entire debate, it's now archived on ETF.com: The Great Commodities Debate - Part I The Great Commodities Debate - Part II @nedsaid: His track record is what it is. He now changed his mind; he is now as convinced about using expensive AQR multi-factor funds as "d...
by longinvest
Mon Aug 28, 2017 6:15 pm
Forum: Investing - Theory, News & General
Topic: Review with Me - Larry Swedroe's new book
Replies: 160
Views: 6484

Re: Review with Me Larry Swedroe's new book

I own Larry Swedroe's book. <snip> The one critique, and it's admittedly quite mild, is I wish that he could do more to discuss "live" portfolios. Buckingham will be happy to create and manage a "live" factor based portfolio if you pay them between $10K and $40k/yr (depending on size of AUM) :D Jus...
by longinvest
Sat Aug 26, 2017 10:19 pm
Forum: Investing - Theory, News & General
Topic: Effect of duration rate on bond funds
Replies: 21
Views: 2004

Re: Effect of duration rate on bond funds

Grabiner, The discussion should include, that bonds are subject to free market pricing, and there have been raises in interest rates, and bonds have rallied sometimes. It is not a direct mathematical equation in a free market. Interest rates can be anticipated to be different, and will factor into p...
by longinvest
Thu Aug 17, 2017 7:52 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 70
Views: 11995

Re: Bill Sharpe's preferred portfolio

aj76er, As a result, there's no way that I would adopt Sharpe's World Stock-Bond Portfolio . I simply won't invest 97% of my money abroad. Another way to look at this is that 75% of your money is invested in just 3% of the global economic output. What industries and/or sectors are going to drive the...