I meant that if you did more than 25% cash to reduce the portfolio risk, it will will reduce the return and increase retirement shortfall risk. I can't remember, but I think even at 50% cash the PP still had a moderate MaxDD, maybe -15% or so. In other words, raising the cash level isn't quite as efficient as using trendfollowing.frugal wrote: b) I've been doing rebalancements only by adding new cash to the assets and put it at 25% ? Why it is not good for retirement goals? Or you are saying that I am only adding to the asset CASH ?
It certainly is. I did it before a few years ago using Simba's spreadsheet and Excel Solver. I actually did it so the net return after inflation was at least 0% each and every year.c) Is that possible to increase the CASH part to the point of 0 negative years?
It didnt put 2009 and 2013 to 0%+ but whos being nitpicky? What was the cash % for this? And BTW you should start from 4/1/1968.Years 46.05
Starting Capital 10,000
Ending Capital 135,335
Total Return 1253.35%
Max Drawdown 2.14% (1980-01-21 - 1980-03-27)
DD > 10% Count 0
Annualized Std. Dev 3.67%
Sharpe Ratio 0.10