Serious Question: What Have You Learned?

This is evident below in one of the most historically insightful valuation metrics, the Shiller Price-to-Earnings Ratio (below since 1860). The question for every capital allocator today is: what did you learn from past bear cycles, and how are those insights incorporated into your capital management choices today? Today, retail investors have a record 73% of their financial assets in equities and a record low 7% in bonds. They all go down together; it’s a question of how much each drops and how long they take to recover. Avoiding portfolio losses requires more than a bunch of different marketing wrappers around the same high-risk assets from different countries and sectors.