Not exact matches
What we're seeing
here — make no mistake
about it — is not a rational, justified, quantifiable response to lower interest rates, but rather a historic compression of risk premiums across every risky
asset class, particularly equities, leveraged loans, and junk bonds.
Here are some of Rob Bennett's thoughts
about using SWR analysis to compare
asset classes.
Here is my own simplified explanation and cautionary note
about these
asset classes in relation to us as individual investors.
This is
here because in the Real World, situations where the investor is adamant
about holding too much of one
asset class, usually real estate, is common.
Last Thursday, I wrote
about the problems inherent in mutual funds that many investors use to get their exposure to the major
asset classes (click
here to read it).