Asset Allocation
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Why I Stopped Believing You Have to Choose Between High Returns and Low Risk
- Fabio Capela
- Low volatility investing , Risk management , Portfolio optimization , Systematic investing , Investment strategy , Volatility control , Asset allocation , Risk return analysis
Every investor gets told the same story: if you want high returns, you have to accept high risk. Want to play it safe? You’ll have to settle for mediocre returns. It’s supposedly the fundamental law of investing, as immutable as gravity.
Read MoreHow I Built an Investment Strategy That Beat the S&P 500 by 8% Annually for 8 Years
- Fabio Capela
- Systematic investing , Portfolio management , Investment performance , Market outperformance , Risk management , Asset allocation , Quantitative finance , Financial strategy
Eight years ago, I was frustrated. Like most investors, I was putting money into index funds and watching my portfolio swing wildly with every market tantrum. The conventional wisdom said I should just “buy and hold” the S&P 500, but watching 20% drawdowns every few years while barely beating inflation didn’t feel like a winning strategy.
Read MoreWhy Index Funds Are Sabotaging Your FIRE Timeline: The Systematic Solution
- Fabio Capela
- Fire , Systematic investing , Portfolio management , Financial independence , Investment strategies , Retirement planning , Asset allocation , Quantitative finance
Most FIRE investors are unknowingly adding 5+ years to their retirement timeline by sticking with “safe” index funds. While the investment world preaches the gospel of passive investing, a growing number of sophisticated investors are achieving Financial Independence faster through systematic strategies.
Read MoreWhy Most DIY Investors Underperform (and How to Fix It)
- Fabio Capela
- Finance , Investing strategies , Portfolio management , Risk management , Behavioral finance , Diy investing , Asset allocation , Passive investing
The promise of DIY investing is appealing: take control of your financial future, avoid advisor fees, and potentially beat the market. Yet research consistently shows that self-directed investors typically underperform major market indices by a significant margin.
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