Welcome to the Stay Welfy podcast. I'm your host Taylor Schulte, and today I'm tackling

part three of our series on investing in the stock market. And this is where we get to the fun stuff.

Today I'm going to share what historical data you might use when trying to determine the stocks to invest in. In fact,

this data is what many of the top money managers in the world used to intelligently allocate

their clients' assets. So if you want to learn how to research the stock market in plain English

and build a world-class retirement portfolio, this episode is for you.

For all the links and resources mentioned today, head over to you staywealthy.com forward slash 83.

Okay, as you all know, there's no crystal ball. Nobody knows the future. And I'm not making any

predictions or recommendations today. That said, history does have a weird way of repeating itself.

And the principles that I'm sharing today, once you learn them, will make a lot of practical

sense, which is why I think they're widely relied upon in the investing world. Now, before we get into

the weeds, I want to first define the term risk-adjusted returns because it's really important

when thinking about portfolio construction and investing. So most people only talk about the returns

that they're getting in the stock market or the overall returns that

they need to reach a certain goal. For example, you might hear your friend or neighbor say,

I bought Tesla stock and I'm up 50% or I'm up 100%. Or you might hear CNBC one day with their

daily update saying something like, this year, year to date, the S&P 500 is up 10%.

Or you might be working on your retirement plan and you find out that you need an annual

6% rate of return on your investments to reach your goals. The key ingredient missing from

all these statements is the amount of risk that you're taking to achieve that rate of

return. I'm willing to bet if you had a choice, my guess is that you would prefer to take as

little risk as possible to achieve that 6% rate of return. Why would you take more risk to get

...