The hottest Asset allocation Substack posts right now

The assumption of negative correlation between stocks and bonds is being challenged in asset management.
Traditional portfolio strategies like 60/40 have faced challenges due to changing asset behavior.
Investors may need to reconsider fixed asset allocations based on historical correlations to adapt to market changes.

Many millionaires invest their money wisely, not just through income.
The top 1% of Americans own more stocks than the other 99%, highlighting the importance of investing in equities for wealth growth.
Affluent retail investors typically have a long-term risk orientation with high equity exposure and minimal panic selling tendencies.

Successful investing comes down to diversification, low costs, and discipline.
The 3-fund portfolio includes U.S. stocks, international stocks, and bonds to ensure balance and minimize risks.
International diversification balances home country bias, while bonds provide stability during stock market downturns.

Housing unaffordability is more due to high rents than high interest rates.
Investors often misunderstand the impact of mortgage rates on home values.
Front-loaded cash outlays in traditional mortgages contribute to the housing affordability issue.

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There are optimists and pessimists on Wall Street, correlating to equity and bond investors.
Over time, optimists have been more right than wrong, especially in holding US stocks.
A perfect investment portfolio combines the fears of bond investors with the optimism of equity investors.

Correlations vary widely over different time intervals, affecting asset allocation decisions.
Shorter time intervals show smaller correlations, while longer intervals have greater variability.
Conservative estimates of correlations using consistent shorter intervals may be more reliable for projecting into the future.

Wealthiest individuals start with more wealth but concentration decreases with age.
New Money households earn higher returns on wealth than Old Money counterparts.
Factors like saving rates and initial wealth play major roles in bridging the wealth gap.

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.
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.
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.