Some perspective: PP vs Boglehead 50/50 portfolio

Pointedstick · Post by **Pointedstick** » Wed Mar 18, 2015 9:13 pm

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!

sophie · Post by **sophie** » Wed Mar 18, 2015 9:29 pm

Also note, this is with the dreaded 25% cash allocation that so many newcomers to the PP love to hate...

Wonderful plots PS!

Dieter · Post by **Dieter** » Wed Mar 18, 2015 10:42 pm

Definitely interesting, although that allocation is 40/60 stock / bond (slice & dice; lots corp bond.)

https://www.ishares.com/us/products/239 ... cation-etf

PP67 · Post by **PP67** » Thu Mar 19, 2015 8:44 am

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...

Post by **dualstow** » Thu Mar 19, 2015 11:03 am

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

That's a good point. I think it would be fairer to run the pp against Vanguard's Target Retirement 2020 Fund (VTWNX).
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.

Post by **dualstow** » Thu Mar 19, 2015 5:13 pm

Just saw your other thread in which it is clear that you have to use an ETF ticker. Hmmm.

buddtholomew · Post by **buddtholomew** » Thu Mar 19, 2015 6:43 pm

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.

Lonestar · Post by **Lonestar** » Sat Mar 21, 2015 9:28 am

Pointedstick,

What did you use to create the charts in your OP??

Pointedstick · Post by **Pointedstick** » Sat Mar 21, 2015 9:54 am

versed1967 wrote: Pointedstick,

What did you use to create the charts in your OP??

http://www.etfreplay.com/combine.aspx

HB Reader · Post by **HB Reader** » Thu Mar 26, 2015 8:11 pm

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...

Yeah, my reaction too. And not just from 1/1/2007.

I miss CS&N.

Some perspective: PP vs Boglehead 50/50 portfolio

Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio

Re: Some perspective: PP vs Boglehead 50/50 portfolio