Wednesday evening, July 27. Re-think Your Portfolio: An Argument for Getting Out of
Equities
Large
and even mid-cap equities have performed terribly the last ten years. It might
appear they are not going to return what they have historically, i.e. 10% over
100 years. So the question becomes: has the market already
factored this in or not? Because if they have then these investments are just
as good as anything else. To the extent that the market has over-reacted to
their bad performance, they may be a buying opportunity.
To the extent that the market has not adequately factored in
their bad performance, for whatever reason – tradition, whatever, … , then they
are still going to underperform, and it would be better to get out now while
you can.
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