Guide
Foundational concepts behind asset allocation, explained in plain English.
Diversification: Why It's the Only Free Lunch in Investing
How spreading money across different, imperfectly-correlated assets reduces risk without necessarily reducing expected return.
Correlation: The Hidden Variable Behind Every Diversified Portfolio
A closer look at how correlation is measured, why it changes over time, and how to use it when building a portfolio.
The Rebalancing Effect: Does It Actually Boost Returns?
Rebalancing is often sold as a way to boost returns, not just reduce risk. Here's what the historical record actually shows.
Reading Risk Metrics: CAGR, Drawdown, Volatility, Sharpe, and Sortino Together
No single number tells the whole story of a strategy's risk and return. Here's how to read the five core metrics as a set.
How to Backtest a Portfolio: A Step-by-Step Guide
A practical walkthrough of using historical data to test an asset allocation — and how to avoid the traps that make backtests misleading.
How Much of Each Asset Class Do I Need? An Age-Based Guide
How time horizon and risk capacity shape a sensible stock-bond mix as you move from your first job toward and through retirement.
Retirement Withdrawal Strategies: The 4% Rule and Beyond
How much can you safely spend from a portfolio in retirement, and what to do when a fixed rule meets an uncertain market.
How to Read Our Charts: Proxy Data, Real Returns, and Heatmaps
A plain-English guide to the data and methodology behind every backtest, chart, and metric on this site.