
A new way to look at risk and return
About This Episode
Paul wishes to warn podcast listeners that this podcast contains a lot of important numbers from the following 4 tables. The torrent of numbers can be irritating but these are some of the most important aspects of risk and return we should know.
Paul asks that investors email him with questions about the tables. paul@paulmerriman.com
In this podcast Paul introduces a new way to understand and compare the likely risk and return of equity asset classes. The biggest challenge for first time investors is not understanding the likely losing periods they will experience as part of the normal progression of successful investments. These 4 tables
compare the historical risk and return of the S&P 500
, Small Cap Value
, a 2 fund portfolio
that’s 50/50 S&P and SCV and 4 fund portfolio
with 25% each in S&P, Small Cap Value, Large Cap Value, and Small Cap Blend.
