Some perspective: PP vs Boglehead 50/50 portfolio
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- Pointedstick
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Some perspective: PP vs Boglehead 50/50 portfolio
For all the year's wailing and gnashing of teeth over the PP's poor returns, let's compare the PP's YTD performance not to 100% stock returns but to the kind of alternative portfolio that reasonably informed and financially savvy people actually have: say, a Boglehead-type 50/50 portfolio, which can be represented by the ETF AOM. Here's the PP (green line) vs AOM (blue line) for the year so far:
[img width=600]https://i.imgur.com/HncsFEL.png[/img]
And since the beginning of 2009:
[img width=600]https://i.imgur.com/HZ8uXsd.png[/img]
And this is during a crazy bull stock market and doesn't factor in rebalancing!
[img width=600]https://i.imgur.com/HncsFEL.png[/img]
And since the beginning of 2009:
[img width=600]https://i.imgur.com/HZ8uXsd.png[/img]
And this is during a crazy bull stock market and doesn't factor in rebalancing!
Human behavior is economic behavior. The particulars may vary, but competition for limited resources remains a constant.
- CEO Nwabudike Morgan
- CEO Nwabudike Morgan
Re: Some perspective: PP vs Boglehead 50/50 portfolio
Also note, this is with the dreaded 25% cash allocation that so many newcomers to the PP love to hate...
Wonderful plots PS!
Wonderful plots PS!
"Democracy is two wolves and a lamb voting on what to have for lunch." -- Benjamin Franklin
Re: Some perspective: PP vs Boglehead 50/50 portfolio
Definitely interesting, although that allocation is 40/60 stock / bond (slice & dice; lots corp bond.)
https://www.ishares.com/us/products/239 ... cation-etf
https://www.ishares.com/us/products/239 ... cation-etf
Re: Some perspective: PP vs Boglehead 50/50 portfolio
Whenever I feel like backsliding, I listen to CS&N's "Almost Cut My Hair" and run etfplay.com using GLD,TLT,VTI,SHY @ 25% each vs VBINX from 1/1/2007 to current... That also doesn't take into account rebalancing but it does show why I like the HBPP in potentially troubling times...
- dualstow
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Re: Some perspective: PP vs Boglehead 50/50 portfolio
That's a good point. I think it would be fairer to run the pp against Vanguard's Target Retirement 2020 Fund (VTWNX).Dieter wrote: Definitely interesting, although that allocation is 40/60 stock / bond (slice & dice; lots corp bond.)
https://www.ishares.com/us/products/239 ... cation-etf
Still, from the chart I can see that the pp is doing better than I thought. Once again, I am reminded that I don't learn much by looking at the pp's individual assets.
- dualstow
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Re: Some perspective: PP vs Boglehead 50/50 portfolio
Just saw your other thread in which it is clear that you have to use an ETF ticker. Hmmm.
- buddtholomew
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Re: Some perspective: PP vs Boglehead 50/50 portfolio
For comparison purposes, my 40/60 allocation (SPY - 22, GLD - 18, TLT - 20, CASH - 40) is positive 1.09%. Gold had a negative impact on returns YTD. I suspect AOM doesn't have an allocation to precious metals.
"The first principle is that you must not fool yourself and you are the easiest person to fool" --Feynman.
Re: Some perspective: PP vs Boglehead 50/50 portfolio
Pointedstick,
What did you use to create the charts in your OP??
What did you use to create the charts in your OP??
- Pointedstick
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Re: Some perspective: PP vs Boglehead 50/50 portfolio
http://www.etfreplay.com/combine.aspxversed1967 wrote: Pointedstick,
What did you use to create the charts in your OP??
Human behavior is economic behavior. The particulars may vary, but competition for limited resources remains a constant.
- CEO Nwabudike Morgan
- CEO Nwabudike Morgan
Re: Some perspective: PP vs Boglehead 50/50 portfolio
Yeah, my reaction too. And not just from 1/1/2007.PP67 wrote: Whenever I feel like backsliding, I listen to CS&N's "Almost Cut My Hair" and run etfplay.com using GLD,TLT,VTI,SHY @ 25% each vs VBINX from 1/1/2007 to current... That also doesn't take into account rebalancing but it does show why I like the HBPP in potentially troubling times...
I miss CS&N.