Historical data based analysis suggesting that US S&P 500 will have near zero returns over the next 10 years & approx. 5% over the next 20 years. This is also in line with previous such data published by JP Morgan…
Key takeaways A bias for action works well for most areas in life. Not so for investing Successful investing requires one to resist the urge to “do something” – particularly in bear markets Munger said you should never interrupt compounding…
Key takeaways The 4% rule comes from back testing based on US data for 50 years Equity & debt returns in India have been falling over the past decades The 4% withdrawal rate was based on the worst period of…
Key takeaways The Shiller PE (CAPE) ratio of the US market is currently around 41.87 — the second-highest level recorded since 1880 The only period with higher valuations was around the year 2000, just before the dot-com crash Historical data…
Key takeaways Re-balancing can increase returns by approx. 0.5% (i.e. approx. 14% over 30 years) Re-balancing helps automatically reduce the risk level in your portfolio during bull markets or bubbles Re-balancing helps you build a very important habit that is…
Key takeaways This strategy is arguably one of the best kept investing secrets in my view What you do during market downturns determines the bulk of your net worth Many investors tend to stop their SIPs or worse, start selling…
Key takeaways Comparing the returns of your Fund’s SIP vs an SIP in it’s corresponding Index is the most basic measure of performance It’s critical that a fund beat it’s benchmark because most funds charge between 1% to 2% for…
Key takeaways This article focuses on the current US market, however, by getting relevant valuation data, a similar approach could be used for any market like India or asset class While the current CAPE ratio of the S&P500 (approx.40)…
Key takeaways Most of us (including myself) tend to pick mutual funds based on star ratings & past returns. But that is a mistake as per Bogle. Before you get to selection of mutual funds, make sure you have…