Asset Allocation & Portfolio Performance

[Kbg]

http://gestaltu.com/2013/10/dynamic-ass ... olios.html

http://mebfaber.com/2013/10/13/asset-al ... ategies-3/


Two very interesting posts.  The top gets at what works when. The bottom is a comparison of various ports over time.

Apologies if any were posted previously.

[barrett]

I've seen that portfolio comparison before but it was worth another look for me. Though the PP doesn't score as well as the others in CAGR, that low maximum drawdown is great to see. As I have written elsewhere, my best earning years are probably behind me and I think I am therefore justified is being extremely loss averse. Others just starting out in their careers might feel differently. One of the simplest yet most profound of Harry Browne's 16 rules is #2 which says "Don't assume you can replace your wealth." That is so important to keep in mind at this end of the earnings trajectory.