A portfolio allocated 100 percent to stocks is like a high-pressure tire, running 120 psi. Sure, over time it’s supposed to roll further than a balanced portfolio of, say 80 percent stocks and 20 percent bonds, or a traditional 60/40 portfolio. But how the allocation performs and how the investor performs are often two different things.
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Why 100 Percent Stocks Might Earn You Less, Long-Term
Everyone knows how it feels to ride a bike with a flat tire. Perhaps you pulled a long-neglected bike from your garage. You were 12 years old, hankering for a chocolate bar, and it was the only way to get to the 7-11 corner store.Or perhaps you were flying along with the breeze in your hair and the…
