Summary
Investor: Long-term volatility is only one way to measure investment danger. Unlike traditional investment calculations, deep risk assesses after-inflation performance. The worst result for US bonds should not come as a shock. We are accustomed to reading about the devastation of US stocks during the Great Depression.
The worst decade for US bonds, world stocks, and world bonds coincided. Since 1950, their deep risk has looked nothing like that of the distant past. The lowest post-1950 performances almost match those from the black-and-white generations. The overseas results stand in stark contrast to the domestic outcomes.
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