I think it's fair to say that stock market returns in 2019 surprised a lot of people.
The S&P500 returned approx. 30%. The MSCI World Index returned > 27%.
To put this into context, over the last 90 years the average annual return for the S&P500 is just shy of 10%. In 2019, the S&P500 return was almost 3x the average. What makes this remarkable is that the general consensus going into 2019 was not exactly rosy. The sell-off in December 2018 was the worst December since the Great Depression in 1931.
Economic Regimes in 2019
To understand 2019 returns, we have to...
I really want to emphasis with these case studies that implementing a regime based asset allocation strategy is incredibly versatile. You can use economic regime filters to compliment any investment strategy for improved risk-adjusted returns. In this case study, I'm applying regime filters to a very popular strategy called...
My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. … I believe the trust’s long-term results from this policy will be superior to those attained by most investors —...
