Quote:
Originally Posted by adios
i don't even know how to address the posts in this thread, they're so bad. If your time horizon is short just cash out and buy govt bonds that match your time horizen.
The returns you are seeking vs the appropriate amount of risk is the balancing act. Most portfolios are not properly compensated for the risk they take on. CAPM would be an excellent place to start in understanding this concept. Of course there are all kinds of other investment vehicles besides stocks. Fir total market return it will probably be a enlightening to study something like CALPERS asset allocation.
CAPM is great...if you live in a box made of the status quo...
