Examining 88 years of returns and risks of an all-value portfolio, Paul explains why young investors might legitimately consider a 100% all-value portfolio, while the combination of these asset classes should account for only a small part of a retiree’s portfolio.
balancing a portfolio
In the discussion of this 2-Fund Combo, Paul suggests a number of related and useful articles and podcasts, particularly for first-time listeners:
In this radio interview with Ken Roberts, of Ken’s Bulls and Bears, Paul and Ken discuss an array of essential investor questions and concerns, including the following:
• Given that investors are at risk of responding emotionally to what’s going on in market, what should they do to keep their emotions in check?
• What are the simple investment decisions that can have the biggest impact on future returns?
• What is the best mix of stocks and bonds?
• Is there a point that we can have too much diversification?
• Why not make an attempt to protect our money against huge losses?
• What are the risks of taking too little risk?
• What investments aren’t worth the risk?
• How important is it to understand your investment expenses and their long term impact on returns?
• Why shouldn’t investors try to beat the market
What Do You Want To Know About Bond Funds?
Paul answers the 14 most common questions about bond funds. He references the following article about bond risk: http://www.finra.org/
investors/alerts/duration- what-interest-rate-hike-could- do-your-bond-portfolio
1. Why invest in bond funds when equity funds make so much more money?
2. What bond funds should I own in a rising interest rate market?
3. What bond fund should I use in my emergency fund?
4. Why not use high yield bond funds?
5. What do you look for in selecting the best bond funds?
6. Which are better: bond funds or individual bonds?
7. Should I rebalance my bond funds periodically?
8. What are the risks of owning bonds?
9. How much of my portfolio should be in bonds?
10. How do bonds compare to annuities?
11. Why don’t you recommend international bond funds?
12. What do you think of “go anywhere” bond funds?
13. Why not invest in funds that own dividend paying stocks instead of bond funds?
14. How much can I lose in a bond fund if interest rates rise?
What are the most important things investors should know about the performance of their investments? This is the first in a series of podcasts about performance to give investors an in-depth knowledge of the asset classes Paul encourages investors to hold in their portfolios. This podcast covers many of the misleading aspects of performance including one Paul calls “the big fat lie.”