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Sleeping On Expensive Financial Pillows

Wade Slome, CFA profile picture
Wade Slome, CFA


  • In the short run, pillows manufactured in the form of bonds can feel cozy in a world of low volatility and generationally low interest rates.
  • Although stocks can feel like stiff, uncomfortable pillows in the short term, in the long run, historically those stiff, uncomfortable stocks become vastly more comfortable than bonds.
  • Determining your asset allocation is a monumental decision that should be driven by various factors, including risk tolerance, time horizon, income needs, taxes, and other factors such as your personal objectives.

Investment management. Portfolio diversification.
Olivier Le Moal/iStock via Getty Images

Everybody loves a good night’s sleep and that requires a comfortable pillow. Unfortunately, many investors are overpaying for their pillows in the form of overpriced, interest rate sensitive bonds. If you aren’t careful, your retirement dreams could turn

This article was written by

Wade Slome, CFA profile picture
Wade W. Slome, CFA, CFP® is President and Founder of Sidoxia Capital Management, LLC and published author of How I Managed $20,000,000,000.00 by Age 32. In addition, Mr. Slome has been a media go-to resource as seen on CNBC and ABC News. He has also been quoted in the Wall Street Journal, USA Today, New York Times, Dow Jones, Investor's Business Daily, Bloomberg, Smart Money, among other media publications. Online, he is lead editor of the investment blog, InvestingCaffeine.com and a contributing writer to Morningstar, and Wall St. Cheat Sheet. Bloomberg identified him as the second youngest manager among the largest 25 actively-managed U.S. mutual funds in 2005. Besides his work at Sidoxia, Mr. Slome is an instructor at the University of California, Irvine extension department, where he teaches the Advanced Stock Investment course. Wade Slome holds an MBA from Cornell University with an emphasis in Finance. He earned a B.A. in Economics from UCLA. In addition, he holds the credentials of CFA (Chartered Financial Analyst) and CFP® (Certified Financial Planner). Mr. Slome managed one of the ten largest growth funds in the country ($20 billion in assets under management) at American Century Investments, and currently manages a hedge fund in addition to separate customized accounts for a selective client base at his firm (Sidoxia Capital Management, LLC) in Newport Beach, California.

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