But the markets are not standing still. Over time, some asset classes outperform while others lag behind. Stocks can rise sharply during a bull market. Bonds can stabilize the portfolio during recessions. As these returns increase at different rates, the asset mix begins to diverge from your original allocations. An 80% equity portfolio can quietly […]
Over the same period, stock markets have delivered returns well above historical averages, which may lead people to take on more risk than they normally would by reducing their bond holdings. If you look at that again, before taxes historical bond returnsThere have been some long periods where returns have been very poor, as you […]