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Nov 6, 2024 2 min

Navigating the Post-Election Environment

History suggests that investors shouldn’t be concerned about material asset return differences under different political administrations. A portfolio of 60% equities and 40% fixed income has produced an annual compound return of 8.1% since 1860 with a Republican president and a 7.8% annual compound return with a Democratic president.
Oct 29, 2024 6 min

The global 60/40 portfolio: Steady as it goes

A globally diversified portfolio of 60% stocks and 40% bonds declined about 16% in 2022—a painful period for balanced investors that raised doubts about the viability of this strategy*.  Some commentators even declared the old standby dead.
Sep 18, 2024 5 min

Active and index fund investing: Characteristics, not labels

Implementing an investment strategy is often presented as a choice based on whether a fund is labeled “active” or “index.” Those labels are important, as they convey pertinent information about funds. However, I believe it’s more important that investors consider the characteristics behind those labels. Doing so can strengthen investors’ conviction about why they might include active and index funds in their investment plan and can increase their chances of success.
Aug 29, 2024 10 min

Economic payoff of AI is coming—but it’s not here yet

Investments in AI are unlikely to ward off a near-term U.S. economic slowdown or justify rich stock valuations.