Correlation between Emerging and Developed Markets on the long run

It's harder these days to diversify your portfolio:

Average “Real Outperformance” of Stocks over Bonds per decade since 1900

From Close Brother Asset Mangement: "A simple analysis of historical trends shows that the 2000s represented a deep cyclical trough for equities compared to bonds. So far, the 2010s have followed on trend as illustrated in the chart below."

The theoretical explanation for Loss Aversion

From Fidelity: "Based on kahneman and Tversky’s “Prospect Theory,” the steepness of the line illustrates that the pain people experience from a loss is nearly twice as powerful as the pleasure they tend to experience when they achieve an equivalent type of gain."

Historical asset class return and risk (1993—2012) for Equities, Bonds, Real Estate and Hedge funds

The equity market has experienced more days of 2% declines during the past 13 years than the prior 53-year period.

The equity market has experienced more days of 2% declines during the past 13 years than the prior 53-year period.