Why long-term U.S. stock market outperformance could be because it has avoided major catastrophes. Does an over-reliance on historical U.S. stock returns when modeling retirement outcomes lead to spending rates that are too high? Topics covered include: Why you might consider earthquake insurance What is survivorship bias and what are some examples Why the U.S. is an outlier when it comes to stock market performance Why the 4% retirement spending rule might be too … [Read more...]
298: The Stock Market Is Not the Economy
How the stock market differs from and can perform differently than the economy while remaining highly dependent on the economy for its success. Topics covered include: Why the stock markets in countries with lower economic growth performed better than the stock markets in countries with higher economic growth.How the top 5 stocks in the S&P 500 Index have the largest weighting in 30 years and what will it takes for these stocks to outperform the market.What are the largest … [Read more...]
280 Plus: Will the U.S. Stock Market Continue to Outperform Next Decade?
In Plus episode 280 for the week of December 14, 2019, we review the performance of the global stock market over the past decade and consider the factors that led the U.S. to significantly outperform the rest of the world. Then we consider what has to happen for that outperformance to continue. We also review the recent announcement by UBS to exchange a number of its exchange-traded notes for a new series. This includes the ETRACS Alerian MLP Index ETN (AMU). We consider the ramifications of … [Read more...]