Behavioral

Two Risks That Ruin Long-Run Investing

The first risk of investing is the Drawdown Risk - the loss from the peak. The second risk of investing is the Low Return Risk - the under-performance vs. expectations over a stretched period of time.

The Common Failure of Asset Allocation

Most investors agree that the biggest decision in investing is asset allocation, but few agree on what the best asset allocation strategy is: from “Stocks for the Long-Run” and “Random Walk Down Wall Street”, to “Endowment Style” and “Risk Parity” to “Factor-Based Investing” and “Dynamic Asset Allocation”.

Why do so many investors fail to achieve the average returns that various asset allocation approaches provide over the long-run?