Comments on: Do Stocks Get Less Risky With Time? http://amateurassetallocator.com/2008/06/26/do-stocks-get-less-risky-with-time/ Amateur Asset Allocator Tue, 16 Mar 2010 14:04:52 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Profiting from Stats Class: Reversion to the Mean - Amateur Asset Allocator http://amateurassetallocator.com/2008/06/26/do-stocks-get-less-risky-with-time/comment-page-1/#comment-3140 Profiting from Stats Class: Reversion to the Mean - Amateur Asset Allocator Mon, 26 Jan 2009 14:01:43 +0000 http://amateurassetallocator.com/?p=189#comment-3140 [...] instance, standard deviation is rather important if you want to understand the nature of an investment’s [...] [...] instance, standard deviation is rather important if you want to understand the nature of an investment’s [...]

]]> By: Credit Card Brains » Carnival of Personal Finance #161: The “Feeling Renewed” Edition http://amateurassetallocator.com/2008/06/26/do-stocks-get-less-risky-with-time/comment-page-1/#comment-1521 Credit Card Brains » Carnival of Personal Finance #161: The “Feeling Renewed” Edition Tue, 15 Jul 2008 16:50:09 +0000 http://amateurassetallocator.com/?p=189#comment-1521 [...] at Amateur Asset Allocator asks, “Do stocks get less risky with [...] [...] at Amateur Asset Allocator asks, “Do stocks get less risky with [...]

]]> By: Rob Bennett http://amateurassetallocator.com/2008/06/26/do-stocks-get-less-risky-with-time/comment-page-1/#comment-1492 Rob Bennett Tue, 01 Jul 2008 21:38:13 +0000 http://amateurassetallocator.com/?p=189#comment-1492 My view is that the riskiness of stocks always depends on the valuation level that applies on the day the stocks are purchased. So stocks bought today (when prices are sky-high) are a lot more risky than the number above (which do not include an adjustment for today's valuations) suggest. However, the historical data indicates that that risk does diminish over time. Stocks purchased at today's prices may well provide a poor return for 10 years or even 20 years. After 30 years, however, even stocks purchased at high prices should provide good returns. Rob My view is that the riskiness of stocks always depends on the valuation level that applies on the day the stocks are purchased. So stocks bought today (when prices are sky-high) are a lot more risky than the number above (which do not include an adjustment for today’s valuations) suggest.

However, the historical data indicates that that risk does diminish over time. Stocks purchased at today’s prices may well provide a poor return for 10 years or even 20 years. After 30 years, however, even stocks purchased at high prices should provide good returns.

Rob

]]> By: Investment Costs Matter | Amateur Asset Allocator http://amateurassetallocator.com/2008/06/26/do-stocks-get-less-risky-with-time/comment-page-1/#comment-1486 Investment Costs Matter | Amateur Asset Allocator Mon, 30 Jun 2008 11:09:28 +0000 http://amateurassetallocator.com/?p=189#comment-1486 [...] week, I wrote that from a modern portfolio theory perspective, stocks actually become more risky with time (Obi-Wan Kenobi was right).  Because even small differences in returns can have monumental [...] [...] week, I wrote that from a modern portfolio theory perspective, stocks actually become more risky with time (Obi-Wan Kenobi was right).  Because even small differences in returns can have monumental [...]

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