Waiting For Average

This week's letter is from my good friend Ed Easterling of Crestmont Research in Dallas. Ed helped co-author a couple of Chapters in my book "Bull's Eye Investing" and that inspired him to write his own book. Ed's must read book, in my opinion, is called "Unexpected Returns: Understanding Secular Stock Market Cycles."

In this article Ed lays out why boomers will not see the average market returns of the past in their future. The "Buy and Hold" crowd will point to Ibbotson studies on long term returns and Markowitz's Modern Portfolio Theory as reasons to invest, but Ed explains how these two things can be used to mislead investors and that is why it is this week's Outside the Box.