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.
We're taking my son to his Introduction to Auburn event at Auburn University.
we'll see you next week though!
In the meantime, a white paper I'm reading.
"This study validates...that the implementation of (China's) Five Year Plan was followed by a significant production expansion in the encouraged sectors of China. This expansion crowds out production in the same sectors in the US, leading to significant drops in both employment and investments and a notable increase in plant closures."
But it's TRUMP that started the trade war, eh?
sorry folks gotta move all this mulch by this weekend.
WE're preparing for my son Cavan's high school graduation party. So, it's a BIT hectic here to make sure everything is in place...
If it was me, I'd grill burgers and sit on coolers full of water. But apparently I'm not in charge. Who knew?
