Michael Batnick and Downtown Josh Brown are Live From The Compound to talk about a really simple way to figure out the optimal mix between stocks and bonds for individual investors - this is something everyone can do for themselves as a device to determine how much risk you can really stand.
By examining the drawdown vs returns history of a two-index portfolio, and looking at ten different incarnations of it, you can get an idea of how much downside IN DOLLAR TERMS you'd be able to live with during a worst case scenario market event.
Read Michael's post to see the chart we put up:
https://theirrelevantinvestor.com/2019/02/19/un-complicating-investing/
Be sure to subscribe to our channel so you never miss an update:
https://www.youtube.com/THECOMPOUNDRWM
New to investing? We can help! Try https://liftoffinvest.com/ now!
Follow us on Twitter:
https://twitter.com/RitholtzWealth
Follow us on Facebook:
https://www.facebook.com/ritholtzwealth/
Talk to us about your portfolio or financial plan here:
http://ritholtzwealth.com/
