Desert wrote:Tyler, I've been thinking more about your GB portfolio. The more I look at it, the more I like it. The 20% gold & 40% equity combination have performed really well throughout many varying periods since 1970. I believe you decided to go with the GB for your entire ERE portfolio, is that correct?
Yes, although I personally went with small cap blend instead of small cap value. I went back and forth on that for a while and eventually decided on the more "neutral" approach to evenly fill out the Morningstar 3x3 grid using VTI and VB. Either way, the results are pretty similar.
Good point about bullets vs barbells, as that's definitely a reasonable iteration for those with limited bond options. And it's funny -- I also ran the numbers for 80% VWINX and 20% gold a while back and really liked it!