Category

Real Returns

The 'average' investor earned slightly more than 5% in their investment portfolio in 2016.

How Did the Average Investor Do in 2016?

By | Active Investing, Behavioral Finance, Investment Returns, Passive Investing, Real Returns, Stock Markets | No Comments

Openfolio, a company dedicated to providing information and transparency to investors, recently released some data about how investors performed in 2016.  Openfolio aggregates the performance data from over 70,000 subscribers who voluntarily and anonymously share their investment portfolio information with Openfolio.  The idea is that sharing data among its users should help them realize better investment performance.  We will discuss…

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Why You Should Care About Real Rates of Return

Why You Should Care About Real Rates of Return

By | Interest Rates, Investment Returns, Real Returns, Returns | No Comments

Nominal interest rates are currently below zero in many countries, including Germany, Denmark, Switzerland,     Sweden, and Japan.  These levels have shattered the belief that zero is the lowest that interest rates can go.  While negative nominal rates are a relatively new phenomenon, historically speaking periods of widespread negative real returns across countries have been quite common. Those of us who…

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