Adding other sources of diversification could significantly reduce the risk from increasing stock exposure, our research suggests.
By Kent Hargis (Pictured) and Chris Marx
After years of chasing safety at all costs, investors are now reaching for opportunities in long-spurned riskier stocks. But they will still want to safeguard their portfolios against painful market swings in the future. (more…)
For years, we’ve advised clients to hold diversified portfolios with balanced allocations to stocks, bonds and other assets. Lately, it’s been a hard sell, especially after years of underperformance by active equity managers. But the tide may be turning. (more…)
Many US endowments and foundations (E&Fs) still plan to spend 5% of their assets each year, despite unusually low expected returns. We think few understand how likely it is that this will limit their ability to fulfill their missions in perpetuity. (more…)
In the world of retirement planning, some myths persist, despite continued efforts to debunk them. Below, my colleague Tara Thompson-Popernik discusses a few of the most stubborn myths we encounter. (more…)
Planning to sell your business? Try to wrap up the deal before year end, when today’s highly favorable US capital gains tax rate is scheduled to expire.
On the surface, high-yield bonds look a lot like their relatives in the fixed income world. But in some key respects, high-yield debt acts a lot more like equities than like other bonds. This has some often unappreciated implications for portfolio construction.
The extraordinary market volatility and poor equity returns of recent years—as well as fears about the macroeconomic outlook—have prompted many investors to contemplate de-risking their overall portfolios. Perhaps they should—but first, they should contemplate the return side of the equation.
If there’s one thing you know about capital-market forecasts, it’s that they’re usually wrong. So why bother forecasting—or paying attention to forecasts? (more…)
A reader of my recent article on when to take Social Security benefits asked whether my analysis would change if a person does not retire at age 66 and plans to work until age 70—and is earning more now than he expects to earn at retirement. That’s a good question. (more…)