I see this community is REALLY responsive, I didn't see this replay. Each of the assets has a non-negative expected real return.  According to the numbers posted at http://www.bogleheads.org/wiki/Historical_and_expected_returns the expected real returns are: Cash (0-2 year Treasuries): 0.3% Long Ter...

It's a valid concern. But ask yourself this: if assets in your portfolio are falling more than they're rising, where is that excess money going ? Hope that helps! It definetly helps, yes. But let me rephrase your sentence: "But ask yourself this: if assets in your portfolio are falling less th...

Thanks to all for such quick answers. I apologize for any grammatical or spelling mistakes, English is not my native language. Medium Tex, by what you say "...our book...", I understand that you are one of the authors, Roland&Lawson, of the PP book. I consider a privilege to be able to...

Good morning, this is my first post in this forum  :). I have a question on the PP methodology. Why should the PP on the long term give approx + 3% of real returns instead of, say, - 3% of real returns? Do you know of some rationale other than the historical records? I think that trading or investin...