How much of your portfolio should be in stocks? It's one of investing's most important questions — and the standard answer is costing the average investor the equivalent of 2% of their lifetime consumption. Yale economists have finally built something better, and it fits in a spreadsheet.
The investors who stay calmest during market volatility aren't the bravest. They hold passive investing products that don't ask them to make decisions. Research from Morningstar, Vanguard, and academic studies shows that product design, not temperament, explains why passive fund investors trade less, hold longer, and capture more of their returns. UK flow data from the current Iran-driven selloff confirms the pattern in real time.
Robin Powell
Mar 2310 min read
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