BlackRock-iShares-ETFs

It’s beneficial to start investing early. The longer the period you invest, the higher the returns will be exponentially.

The S&P 500 will not only keep up with inflation but also gives returns that are much higher than inflation rates.

The CAGR for equity for the last 20 years is 7.8%. Equities outperformed investment-grade corporate bonds. Equities are the best performing asset class.

Not only are young individuals scared of investing in equities, they’re also hoarding cash under the mattress in case a similar crisis should reoccur.

It’s been said the amount of equity you should hold in your portfolio is inversely proportional to your age. The proportion of equity is 100 minus your age.

The percentage of stock ownership has been dipping since the financial crisis. Currently, it stands at 54%, much lower than the 65% pre-crisis level.

Minimum volatility indexes seek to minimize the effects of the occasional gutter ball, allowing investors to focus more on their long-term investment objectives – the pins at the end of the alley.

So if a min vol strategy tends to outperform the broader equity markets when volatility is on the rise, yet underperform when volatility abates, wouldn’t it just be a wash? Not so fast.

When the equity markets were dropping, the min vol index acted as a cushion in these volatile markets, providing stronger relative performance.

“Minimum volatility” is often misunderstood as an investment that’s only useful during volatile markets, but there’s more to the story.