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Why the Heck Do We Own Bonds?

When advising our sons and daughters on how to invest for their retirement in roughly 60 years, we point them to stocks and the budding venture capital ideas of their classmates. The same advice might also hold true for perpetual institutions with a nearly infinite time horizon, no annual cash-flow requirements, and a passing interest in market volatility.

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3 Indexing Best Practices

We recently worked with a client as it was evaluating a passive investment in large cap U.S. equity. After a discussion about the two most common indices used to represent the large cap U.S. equity market and what would be most appropriate for this investor, a committee member made a very interesting observation:

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