Friday, July 3, 2020

This week's interesting finds

It's time to start withdrawing the money you've accumulated - but making sure you know how much to withdraw is key. In this installment of EdgePoint's academy series on retirement, we discuss the importance of withdrawal rates, how inflation and investment returns impact them, and ways to make sure money you haven't withdrawn yet can keep growing.

Why is there a belief that Equities and Bonds must be negatively correlated?
It hasn’t always been the case:
Based on death certificate data available on July 2, 2020, 5.9% of all deaths occurring during the week ending June 27, 2020 (week 26) were due to pneumonia, influenza or COVID-19 (PIC). This is the tenth consecutive week of a declining percentage of deaths due to PIC. The percentage is equal to the epidemic threshold of 5.9% for week 26.
An article that summarizes some of the problems with drawing conclusions from the increase in COVID-19 cases in the US.

Mega-cap growth vs the rest 
Mega-cap growth companies make up roughly 28% of the S&P 500. These are growth stocks with a market cap of more than $200 billion. These businesses have had a large impact on performance YTD.  Not surprisingly, the average number of retail investor accounts holding mega-cap growth companies has more than doubled.