What it Takes to Get a 7% Return Today vs 10 and 25 Years Ago
In this week’s Globe and Mail article, Larry discusses the dichotomy between the recent low volatility we’ve seen in markets and the very high risk that we’re facing as markets make new highs. Many don’t seem to really understand that risk is a four-letter-word until it bites them. Risk is the REAL cost of investing (it’s not fees although if you can avoid making terrible investment decisions, low fees can’t hurt).
Larry takes a look in this Globe and Mail piece at how much risk you’ve had to take to get a 7% return over the past 25 years, and what you’ll likely have to contend with going forward to keep getting that long-term average equity return:
Read the article online at the Globe and Mail: http://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/if-volatility-is-so-low-why-is-portfolio-risk-so-high/article31588031/?ord=1