The #1 Two Equity Fund Portfolio

In the podcast, Paul introduces a new Fine Tuning Table that compares different combinations of two equity funds (S&P 500 and Small Cap Value), providing the best way to look at the risk and return implications of combining these two great asset classes. For over 20 years we have produced these tables representing combinations of an equity asset class, or equity portfolio, and different percentages of bonds.

The first table (Table 3) we produced many years ago compared the S&P 500 with bonds. Paul points out many ways to use this new table as a learning tool. The lessons focus on the range of returns and risk exposure an investor is likely to experience, as well as the emotional hurdles each combination may create. These tables have been the best educational tool we have to help investors understand the long-term relationship between risk and return.

On Friday, Oct. 1, 2021, Paul will make a 60-minute presentation at the AAII Virtual Investor Conference, “20 Things You Should Know About Small Cap Value Funds,” during which he will discuss this new Fine Tuning Table, along with many other important aspects of the small cap value asset class . Paul asks listeners to suggest additional lessons they get from their review of the Table. HE intends to review these responses in preparation for his presentation on October 1. Please send your comments to paul@paulmerriman.com.

Paul also discusses the broad range of topics that will be covered at the Conference. Not only will Paul and Chris Pedersen be presenting separate topics, each of them will be on panel discussions. Chris, along with Larry Swedroe and Jack Vogel, will discuss Factor Investing, and Paul, along with Christine Benz and Craig Israelsen, will discuss Retirement Investing.

For information on the the AAII Virtual Investor Conference speakers and topics, and to register, go to: https://invest.aaii.com/conference/