Getting Rich in a Poor Market

Getting Rich in a Poor Market, Part VI

In a low return environment, investors need to do things differently if we want to have any hope of growing our capital. Many of these different things – the ones I’ve already talked about – have to do with playing offense in a smarter way. We’ve examined using more aggressive asset allocations, taking greater advantage …

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Getting Rich In a Poor Market, Part V

In my recent posts we’ve looked at various strategies investors might turn to if we find ourselves mired in a long period of unacceptably low investment returns. We’ve evaluated higher equity allocations, taking better advantage of the return premium associated with illiquid investments, and departing from indexing to try to find more alpha among the …

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Getting Rich In a Poor Market, Part IV

We’ve looked at two options for our portfolios if, as seems likely, we are entering into a period of historically low returns: more aggressive allocations to equities, and taking better advantage of illiquid assets. We now turn to the question of alpha. “Alpha” is a measure of risk-adjusted performance. If a manager outperforms an appropriate …

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Getting Rich In a Poor Market, Part III

We are speculating about possible strategies investors might use if, as seems likely, we find ourselves mired in a long period of unacceptably low investment returns. Last week we looked at the possibility of adopting much more aggressive equity allocations than most of us would normally be comfortable with. We found that a portfolio allocation …

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Getting Rich in a Poor Market, Part II

If we are, in fact, facing a prolonged period of subpar returns in both stocks and bonds, as seems likely, there are almost limitless ways this future could play out. We might, for example, simply experience long years of generally positive – but low – returns, interspersed with down years. At the end of the …

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Getting Rich In a Poor Market

Virtually every thoughtful observer of the stock and bond markets has concluded that investment returns in the future are likely to be well below recent returns and even well below long-term norms. This situation is reminiscent of the late 1990s. In 1999, following an almost uninterrupted 17-year bull market, investors on average expected future stock …

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