The hottest Asset allocation Substack posts right now

And their main takeaways
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Top Finance Topics

The 1%

Market Sentiment • 589 implied HN points • 09 Apr 23
💰 Finance Investing Wealth Management Asset allocation Equities Real Estate
  1. Many millionaires invest their money wisely, not just through income.
  2. The top 1% of Americans own more stocks than the other 99%, highlighting the importance of investing in equities for wealth growth.
  3. Affluent retail investors typically have a long-term risk orientation with high equity exposure and minimal panic selling tendencies.

3 Fund Portfolio

Market Sentiment • 452 implied HN points • 19 Mar 23
💰 Finance Investing Asset allocation Bonds Index funds
  1. Successful investing comes down to diversification, low costs, and discipline.
  2. The 3-fund portfolio includes U.S. stocks, international stocks, and bonds to ensure balance and minimize risks.
  3. International diversification balances home country bias, while bonds provide stability during stock market downturns.
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The Wild Nature of Correlations

Reminiscences Of A Young & Naïve Financier • 19 implied HN points • 28 Feb 23
💰 Finance Investing Correlations Market Analysis Asset allocation Financial Modeling
  1. Correlations vary widely over different time intervals, affecting asset allocation decisions.
  2. Shorter time intervals show smaller correlations, while longer intervals have greater variability.
  3. Conservative estimates of correlations using consistent shorter intervals may be more reliable for projecting into the future.

How big is the equity risk premium?

Klement on Investing • 1 implied HN point • 11 Dec 24
💰 Finance Investing Risk management Asset allocation Market Trends
  1. Institutional investors are more sensible than retail ones. They adjust their expected returns based on market conditions, increasing them during declines and lowering during rallies.
  2. Pension funds tend to use higher risk premium values compared to other institutional investors. This is likely due to their need to show that their assets can cover their liabilities.
  3. There's a wide range of expected equity risk premiums among different asset managers. Some have very pessimistic views on US equities, while others are much more optimistic.

3: On 401ks, Asset Allocation, and the Google Sheet that will get you Financial Freedom

Austin's Analects • 0 implied HN points • 26 May 21
💰 Finance Investing Personal Finance Entrepreneurship Asset allocation
  1. 401k is important for financial freedom, but questions like how much to invest and what to invest in can be confusing. It's crucial to understand how to leverage your 401k to achieve financial goals.
  2. Diversification in stock portfolio asset allocation is essential for reducing risk. Researching and adjusting your investment allocation based on personal finance blogs and books can be beneficial.
  3. Developing a comprehensive financial model can help with personal finance management and achieving financial freedom. Utilizing tools like Google Sheets can provide valuable insights into budgeting, investments, and taxes.

A Viral Market Update VIII: A Crisis Test - Value vs Growth, Active vs Passive, Small Cap vs Large!

Musings on Markets • 0 implied HN points • 13 May 20
💰 Finance Investing Market Analysis Risk management Asset allocation Economic Trends
  1. The recent market crisis has highlighted differences between value and growth investing. Value investors have faced significant losses, while growth stocks did not drop as much.
  2. Active investing is struggling against passive strategies like index funds, which have been gaining popularity. Many active funds underperformed during recent market turmoil.
  3. Small cap stocks have underperformed compared to large caps during this crisis. This suggests that large companies may become more dominant in the post-COVID economy.

A Viral Market Meltdown IV: Investing for a post-virus Economy

Musings on Markets • 0 implied HN points • 23 Mar 20
💰 Finance Investing Market Analysis Economic Trends Risk management Asset allocation
  1. The market is going through a tough time, and many investment options have lost value, showing that no asset class is completely safe right now.
  2. How quickly the economy rebounds after the crisis will depend on various factors, including consumer behavior and structural changes in the economy.
  3. Depending on your view of the recovery, you can adopt different investment strategies, like focusing on lower-debt companies or innovative ones that may thrive in the new normal.