Hedging sounds like a smart thing to do. But has it actually worked? This post examines the historical costs and benefits of hedging stock exposure with SPY puts.
Bonds provided stellar returns in 2008. Can they be counted on in the next downturn? And which categories have historically been strongest in volatile markets?
Imagine you took a time machine back to 2007. This is what the rear-view mirror looked like for U.S. and international stocks: International stocks substantially outperformed and U.S. investors missed out by sticking close to home. Since 2007, the roles have reversed and U.S. stocks have generated higher returns. The chart below shows U.S. and…
Value averaging is an effective alternative to lump sum investing or dollar cost averaging. I personally use it whenever new clients want to spread out initial allocations over time.
Investors earn compound returns, not average returns. The difference between compound and average returns is called the “volatility tax”. This post shows the historical volatility tax for major asset classes.