Saturday, April 04, 2015 7:32:00 AM
Here's another version that shows the inflation adjusted values (real gains (losses)).
That six way yearly rebalanced equal weighted blend is somewhat similar to a Larry (Fat Tail Minimisation) Portfolio - which holds 15% Small Cap Value, 15% Emerging Markets and 70% TIPS - but where in the six-way set TIPS are replaced with a combination of short term treasury bonds, long term treasury bonds, inflation bonds and gold (and Emerging Markets in this case has been replaced with Europe/Asia/Far East).
5.4% annualised real is quite respectable given the somewhat low portfolio volatility.
Generally years in which real losses were apparent where adjoined by better years that compensated for such losses i.e. losses were relatively short-lived events. There was also reasonable regularity of the best asset gain potentially being top-sliced (profit-taken) to provide a income.
That six way yearly rebalanced equal weighted blend is somewhat similar to a Larry (Fat Tail Minimisation) Portfolio - which holds 15% Small Cap Value, 15% Emerging Markets and 70% TIPS - but where in the six-way set TIPS are replaced with a combination of short term treasury bonds, long term treasury bonds, inflation bonds and gold (and Emerging Markets in this case has been replaced with Europe/Asia/Far East).
5.4% annualised real is quite respectable given the somewhat low portfolio volatility.
Generally years in which real losses were apparent where adjoined by better years that compensated for such losses i.e. losses were relatively short-lived events. There was also reasonable regularity of the best asset gain potentially being top-sliced (profit-taken) to provide a income.
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