New Study Supports 100% Equity Investing for Life

02/01/2025 15 min Temporada 3 Episodio 1
New Study Supports 100% Equity Investing for Life

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Episode Synopsis

For years, conventional wisdom has preached the benefits of diversifying between stocks & bonds and gradually shifting to safer investments as we age.  But what if these widely accepted strategies are fundamentally flawed?  A newly published, high-quality study is flipping the script on traditional investment advice, making a compelling case for a 100% equity strategy throughout life. This research, backed by robust data from 39 developed countries and spanning long-term investment horizons, challenges two key conventional wisdoms: That savers should diversify between stocks and bonds. That young people should invest more heavily in stocks than when they are older. Instead, the study reveals that an all-equity portfolio—with a notable tilt toward international stocks—outperforms traditional stock-bond strategies in building wealth, ensuring reliable retirement income, and preserving capital. In my latest podcast episode you'll discover: Is this new study a high-quality study? What does the study prove? What is the effective way to diversify? In what 2 ways is diversifying with international stocks better than with bonds? Why should investors keep the same allocation to stocks as they get older? Is the all-equity strategy safe? Should we actually invest 67% into international stocks? What studies already on my blog agree with this study?  

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