The Importance of Value Tilting in the Stock Market

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The correlation between volatility in the stock market and bond returns goes back to the 1950s. Overall, on average, they are negatively correlated. That does not mean there won't be periods when they are not positively correlated. The other thing we learned from last year is that having alternative assets is important for diversification purposes.

In this episode we answer emails from Bruce, Raymond and Alexi (a/k/a "Dude"). We discuss what we learned from last year about the performance of various assets in a severely rising interest environment, holding a conservative portfolio in accumulation to sleep better and one of the Dude's gambling experiments involving UDOW and TQQQ.

Links:

Updated UNC Paper re Bonds, Flights to Safety and Stock Market Volatility: SSRN-id1436124.pdf

Portfolio Charts Time to Financial Independence Calculator: FINANCIAL INDEPENDENCE – Portfolio Charts

Alexi's UDOW/TQQQ Analysis: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Long Term Analysis of Total Market vs. 50/50 Large Cap Growth/Value: Backtest Portfolio Asset Class Allocation (portfoliovisualizer.com)

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