Tag: Great Recession
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The Effects of Asset Allocation
Stock funds for growth, bond funds for stability The Vanguard Total Bond Fund VBTLX passed through the Great Recession in good shape, even though it typically holds about 25% mortgage-backed securities. First and foremost, it’s a bond fund with low stock market correlation. But it also held higher quality bonds and more U.S. Government securities than other…
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The Great Recession, Condensed
and with Glossary Subprime mortgages, side bets, greed, and fraud. The causes of the Great Recession were subprime adjustable-rate mortgages, and speculation using financial instruments that leveraged the actual market a thousandfold. In other words, greed and fraud. This is a bare-boned explanation of the greatest economic collapse since the Great Depression. The housing bubble that preceded…