Sound Investing

Paul analyzes the 20-year returns of 10 major equity- and fixed-income asset classes. What do we have to learn?  Returns can be totally unexpected but the relationship between asset classes remain the same as they have for almost 90 years. The table below allows investors to examine the year-by-year returns of large and small U.S. equity …

1.Vanguard founder Jack Bogle says it’s time to play it safe. Should we be making changes to our portfolios or stay the course? :40 2. Did active managers beat passive funds in the recent selloff? 15:15 3. What are the relative risks and returns of the S&P 500 and small cap value index? 26:33 4. …

Not all of the numbers are in, but enough are to discuss the returns of 2018. Of course a single year is not indicative of much, but it is often a test of our commitment to Buy-and-Hold. In this podcast, Paul reviews the numbers for his favorite equity asset classes (big, small, value, growth, REITs, …

Paul answers some recent questions from readers and listeners. How far is the market likely to fall? How has your market timing system worked in this market decline? Which is the better Vanguard large cap ETF: VTV or VONV? Jeffrey Gundlach says investors shouldn’t invest in index funds because they are hurting investing behavior. His …

At the 2018 AAII National Conference, Paul presented key concepts from the Ultimate Buy and Hold strategy and premiered the Two Funds for Life strategy, and had the great pleasure of hearing a talk by Mark Hulbert, founder of the Hulbert Financial Digest and senior columnist for MarketWatch. Considering it was the best talk of 2018, Paul asked and was granted …

Paul discusses 9 different lies, or myths, that keep millions of investors from investing in stocks. Some of these lies are created by the “fake news and advertising” from Wall Street, and some by the natural fear of loss.  In one example of an investment myth — “Investing is risky” — he compares the worst …

In this lively conversation, Paul talks with Tim Ranzetta of NextGen Personal Finance about index funds, dispelling common myths young people have about money, how to build a portfolio for life, target date funds, the importance of diversification, the commitment to helping people help themselves, and more. NGPF.org provides an abundance …

Since the market started making noises like a baby bear, more investors are asking,”What is the appropriate percentage of equities in my portfolio?” Paul addresses this question from the points of view of a young investor, a pre-retiree and a retiree, and also considers the dangerous probabilities of bad advice from commission-based advisors. In a …

In wishing listeners a Happy Thanksgiving, Paul shares some of the reasons for his gratitude, and 12 important decisions/choices that every first-time investor will make. He provides a few reasons why one path is likely to lead to a better financial outcome. Attached is a list of the choices he recently used to teach high …

When Chris Pedersen came to Bainbridge Island to tape the video/podcast on the 2 Funds for Life Strategy, he joined Paul in an interview  to address some questions regarding his work on several important projects. Here is a partial list of questions: What are the pros and cons of Best-in-Class and commission-free portfolios? What variables …