AI
Thursday, November 30, 2017 2:02:23 AM
13 Week Treasury Coupon Rate finally broke through 1.3% per year
Hi Tom,
Did a new calculation using the information of VOO(S&P500) and the 1.3% interest rate. Maybe at this moment we have a 70% equity 30% cash portfolio, that could average over 10 years to 85%/15%, one of the advantages of AIM. 10 years seems to be an accepted time frame, I noticed Bogle uses 10 years. The growth%, dividend % and P/E are taken from Vanguard using the VOO information. Elaine Garzarelli's formula is used with P/E plus int% equals 20. One AIM transaction per year for VOO seems reasonable, could be a bit higher maybe.
The CAGR is 9.23%, which is not bad. It may mean that we should have all GTC buy orders loaded, to take advantage of attractive price levels. Yesterday I had a VB sell and also loaded a new GTC buy order with a buy price similar to the market price a year ago(a year ago VB was selling).
Best,K
Hi Tom,
Did a new calculation using the information of VOO(S&P500) and the 1.3% interest rate. Maybe at this moment we have a 70% equity 30% cash portfolio, that could average over 10 years to 85%/15%, one of the advantages of AIM. 10 years seems to be an accepted time frame, I noticed Bogle uses 10 years. The growth%, dividend % and P/E are taken from Vanguard using the VOO information. Elaine Garzarelli's formula is used with P/E plus int% equals 20. One AIM transaction per year for VOO seems reasonable, could be a bit higher maybe.
The CAGR is 9.23%, which is not bad. It may mean that we should have all GTC buy orders loaded, to take advantage of attractive price levels. Yesterday I had a VB sell and also loaded a new GTC buy order with a buy price similar to the market price a year ago(a year ago VB was selling).
Best,K
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
