What in the world is the Moshe Milevsky SORDEX Ratio? SORDEX is an acronym for Sequence-of-Returns Downside Exposure. Translated for T. C. PITS or The Common Person In The Street, it is a way to run several Monte Carlo calculations and see if you are likely to run out of money in retirement.
If that is confusing, let me try to explain in great detail what is going on. In the last 10-11 years, most equity investors, including me, got caught in two "Black Swan" events. In other words, these were three to four Sigma events that were not to happen but once every 100 to 300 years. But we had two such events in the last 10 years. What is going on and how does one prepare to avoid such events in the future?
First, what is a Sigma event? If a portfolio has a risk percentage of 15%,
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FISERV FIRST SOLAR FINISAR FEI COMPANY FAIRCHILD SEMICONDUCTOR INTERNATIONAL
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