There are two sides to stock market corrections. In this post we’ll take a historical look at the length and degree of the drawdowns. We’ll also look to the great potential of investing through the corrections. The long term returns you receive might be the greatest at and near the market bottoms. Meaning the worse […]
Another look at the defensive sectors in the U.S.
The performance of your stock portfolio will be shaped by your geographic weighting, but mostly by your sector allocation. Certain sectors are more growth oriented. Other sectors are more defensive. Some sectors can prosper during inflation while for others, inflation or stagflation is the kiss of death. On the defensive front, consumer staples, healthcare and […]
The all-weather portfolio. Ready for most anything.
I recently posted a portfolio concept for the all-weather portfolio for 2022. The idea behind an all-weather portfolio is that it can prosper during periods of sun, rain, storms, hurricanes, earthquakes and tsunamis. Of course, in the above analogy weather serves as a proxy for the economic conditions that might arrive. The all-weather portfolio is […]
What is an inverted yield curve? Plus, the Sunday Reads.
If you follow the financial headlines, you have probably read about the dreaded inverted yield curve. The inverted yield curve has a very good record (OK, it’s perfect), in predicting recessions. Recently, the yield curve has inverted, and then reversed course. Many economists and market watchers suggest that for now, the yield curve is simply […]
Rewriting the 4% retirement rule, to 3.3%, on the Sunday Reads.
The 4% rule is a retirement funding rule of thumb that suggests potential spend rates in retirement. That is, if you need to push an investment portfolio to the max, you might be able to spend 4.2% (annually) of the portfolio value, adjusted for inflation. Morningstar recently had a look at the 4% rule and […]
The land of confusion, on the Sunday Reads.
I have ESP it’s a curse in many ways. I just ‘knew’ I’d be waking up to some troubling news today (this Sunday). Sure enough, Russia bombed a base near Poland. We also have missiles flying in the Middle East. India accidentally fired a missile into Pakistan (OK that was yesterday, old news). A new […]