investing is are like puzzle pieces, it's not always simple

The stock-bond correlation: it’s not always simple

Market Ethos.
19 September 2022.

The path to maximum wealth creation is to bet the farm on one security — you just have to pick the right one. Just ask Jeff Bezos or Bill Gates. Unfortunately, making the right choice is either impossible or simply luck with incredibly impossible odds. Ask Christian Gronet (Solyndra) or Julie Wainwright (Pets.com): lesser-known innovative founders that just didn’t make it. So, investors opt for the safer and more reliable plan B to reach their long-term goals; instead of shooting for the stars, diversify your portfolio by style, geography and most importantly by asset class. The biggest component for most portfolios is asset class diversification, primarily the combination of equities/stocks and bonds.

Related articles

Market Ethos

Land of the rising sun still shining

November 28, 2023. Market Ethos. Earnings expectations for Japanese equities have fallen 25% over the past year, while S&P 2024 earnings forecasts have come down…

2 minute read

Market Ethos

False start for inflation victory lap?

November 20, 2023. Market Ethos. This market rally may run out of steam, becoming more of a turkey rally (American Thanksgiving turkey, that is). Wouldn’t…

2 minute read

Market Ethos

Active versus passive debate: why not both?

November 13, 2023. Market Ethos. The debate between passive and active is not something new. There are strong arguments that can be made for both…

2 minute read