How bonds can still provide diversification to your portfolio, even though stock and bond returns are just uncorrelated.
Stock Market
Why Are Stocks And Bonds Both Down? Part II
Why have both stocks and bonds declined? Rising interest rates and poor earnings forecasts are only part of the story.
Should You Have a Backup Budget? (part 2)
How do you create a backup budget and how can this exercise lead to a more nuanced risk capacity analysis?
Is It Time to Consider a Backup Budget?
If you are flexible in your spending, creating a backup budget may measure your risk capacity more accurately, illustrating how much stock you can afford.
Recent Stock Market Performance in Context
The stock market has been quite volatile in the last month. There has been considerable investor uncertainty associated with the novel coronavirus and COVID-19. Historical perspective The chart shows the performance of the S&P 500, adjusted for inflation using the US Consumer Price Index (CPI) since the beginning of 1926 (when the Standard Statistics Company [Learn more…]
Expected Returns and the Risk Premium
Returns are unknown, and an individual cannot be certain they will achieve a larger return from one management strategy over another. Rick Miller discusses the how risk premiums should factor into expected returns.
Uncertain Returns and Utility
What interest rate do you use when planning for life? Rick Miller discusses the use of risk-free rates when planning for returns.