Hi Everyone,
As a newbie to the board and someone who is very close to ER. This is my second attempt at ER and I want to do it right (I was burned badly during the Nasdaq 2000 crash). I have been studying MPT as the basis for my assets allocation during ER. I would like confirm my understanding from board members that my understanding of MPT is correct. That is, in the period of high inflation, one should shift more assets into stocks. The reason for my thinking is that the Expected Returns for Riskfree assets increases thereby moving the tangent point to the Efficient Frontier to the right, meaning more stocks allocation?
Thanks in advance for your feedback.
As a newbie to the board and someone who is very close to ER. This is my second attempt at ER and I want to do it right (I was burned badly during the Nasdaq 2000 crash). I have been studying MPT as the basis for my assets allocation during ER. I would like confirm my understanding from board members that my understanding of MPT is correct. That is, in the period of high inflation, one should shift more assets into stocks. The reason for my thinking is that the Expected Returns for Riskfree assets increases thereby moving the tangent point to the Efficient Frontier to the right, meaning more stocks allocation?
Thanks in advance for your feedback.