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If what you are worried about is shortfall risk I don't think you're making a good trade.
I'm not overly concerned about shortfall risk. I would be happy in retirement with $22.4M in 2040. My current net worth of $780,000 would get me there with a 10% annualized return (on the "Core"). To be intellictually honest, I will make further contributions to the "Core" strategy as most of those assets are in my tax advantaged accounts, so the $780,000 base is not likely to stagnate.
My primary objective is seeking excess return with the "Plus" part of my Core Plus strategy.
DRYS isn't my kind of company. Cheap due to cyclical strength, not due to a lack of market enthasium. I prefer a company like AHL that trades cheaply on every core metric, but can generate a full-cycle ROE of 18-20%. Ditto for YCC, though it probably won't be independent for long.
- M
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