Why do investors find it difficult to deal with the reality of the random nature of investment returns? Paul gave a lot of thought to this question in preparation for an interview with Jim Dahle of White Coat Investor and Rick Ferri, President of The John C. Bogle Center for Financial Literacy.
On this podcast he shares his conclusions, including the likely possibility that it is the neat and tidy way we teach the history of returns. Paul focuses on the many decades of underperformance of the asset classes that most investors have in their portfolio. He draws on information from the 4 Fund Combo tables as well as the 9 Decades Study. The interview with Jim and Rick will be posted next month.
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