Author: Steve Hanly
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What area of the market offers the best risk-adjusted returns? Is there a better index to passively invest in and track than the S&P 500? I’ve always assumed there to be a risk/return relationship between market indexes; but when I began diving a little deeper into the historical data it quickly became apparent that there…
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Stocks are risky but they generate high returns. Bonds are safer but they offer proportionally less returns. Investors may think that combining these asset classes in a portfolio linearly scales risk versus return. For the most part this is true; but due to a lack of correlation between these assets, combining them in a portfolio can actually…