For years, conventional wisdom has preached the benefits of diversifying between stocks & bonds and gradually shifting to safer investments as we age.
But what if these widely accepted strategies are fundamentally flawed?
A newly published, high-quality study is flipping the script on traditional investment advice, making a compelling case for a 100% equity strategy throughout life.
This research, backed by robust data from 39 developed countries and spanning long-term investment horizons, challenges two key conventional wisdoms:
-
That savers should diversify between stocks and bonds.
-
That young people should invest more heavily in stocks than when they are older.
Instead, the study reveals that an all-equity portfolio—with a notable tilt toward international stocks—outperforms traditional stock-bond strategies in building wealth, ensuring reliable retirement income, and preserving capital.
In my latest podcast episode you'll discover:
-
Is this new study a high-quality study?
-
What does the study prove?
-
What is the effective way to diversify?
-
In what 2 ways is diversifying with international stocks better than with bonds?
-
Why should investors keep the same allocation to stocks as they get older?
-
Is the all-equity strategy safe?
-
Should we actually invest 67% into international stocks?
-
What studies already on my blog agree with this study?