How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile MarketHow Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market
How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market
Our allocation to risky assets should vary based on the expected return, volatility, risk aversion, and how much we can earn risk-free. That means we should be taking less risk right now. Listen to learn why.
Topics covered include:
Why there are so few billionaires
Why the hedge fund Long Term Capital Management imploded
Why how much to invest is more important than where to invest
How the Merton share formula can assist with determining what percent of our wealth to invest in risky assets
Why are expected outcomes so much greater than the median outcome and why it matters to our investing
“net IRR” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the sale date. IRR may not be indicative of Masterworks paintings not yet sold, and past performance is not indicative of future results. See important Reg A disclosures: Masterworks.com/cd
