Wednesday , 27 May 2020

Asset Allocation

Stock Market Not Likely To Crash Soon & Here’s Why

History shows rather clearly that the stock market is prone to extreme events, aka crashes. The challenge is deciding when the risk for a repeat performance is unusually high... The leading factor, of course, is the business cycle but internal market issues can't be ignored either. With that in mind, I've developed what I think of as a crash-risk index for the U.S. stock market (S&P 500), which draws on signals from ten metrics that are reflecting different factors...

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Be Careful! Former Investment "Rules" Nolonger Work – Here’s Why

Investment “rules” that were relevant for a century are obsolete. They were based on a world where economies grew, people’s standard of living increased and outcomes tomorrow better than today. Arguably each of these conditions will not hold in the future but if they don't, neither do the rules of thumb that guided investing last century. These guiding principles developed and worked in a world that that no longer exists but applying them in the future will result in devastating financial outcomes. [Let me explain.] Words: 1261

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