ochotona wrote:
I think you'd be doing your friend a favor if you talked him into selling half of his EM allocation, and buying gold. It's an OK portfolio, if he's younger. If he's over 50, he's going to have trouble when the 60% stocks and REIT lose 1/2 or more of their value in the next bear market.
Indeed I would, but I never offer advice unless I'm asked. When he originally asked I wasn't comfortable with gold like I am now. I've mentioned that I hold gold, but unless he asks I won't interfere. Like I said, he's very happy with it.
Libertarian666 wrote:
I was very fortunate in that my first attempt to outsmart the market led to an almost instant margin call, which convinced me to avoid margin afterwards.
I'm sure you didn't feel fortunate in that moment, but at least you learned early instead of late. Can you imagine amassing a fortune and then getting margin called out of it? A disaster sure to befall some unlucky fool.
That is rather close. I know for sure there was no talk of Developed International, but other than that, extremely close. It still ends up being like a 60/40, though REITs can be a bit feisty when compared with normal equities.