Oh, and by the way, always giving glory to our Lord, Jesus Christ! He comes first. Always.
From:
Are Stocks Really Less Volatile in the Long Run?
LUBO ˇ S Pˇ ASTOR and ROBERT F. STAMBAUGH ´ *
"The long-run volatility of stocks is of substantial interest to investors. Evidence of lower long horizon variance is cited in support of higher equity allocations for long-run investors.
Our empirical results indicate that stocks should be viewed by investors as more volatile at long horizons. Once uncertainty about the parameters and conditional expected return is recognized, however, the same
investors find the typical glide path significantly less appealing.
Investors with sufficiently long
horizons instead prefer glide paths whose initial as well as final stock allocations are substantially
lower than those of investors with shorter horizons."
Exactly! Once UNCERTAINTY comes into play investors have LESS risk tolerance, not more. Not to recognize that is to not understand human behavior.
Ed McQuarrie talks the REAL History of Stocks and Bond performance.
Chloe and I went to a Metal show in Atlanta. gotta spend time with the kiddos before they kick you to the curb!
Come on over, Rover and hang out. Bring your questions, put em in ALL CAPS if you would.
See you there at 7pm!
