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Expected Returns / Enhanced Through Diversification
Posted: Tue Sep 01, 2020 3:52 pm
by yankees60
For those straying from classic Permanent Portfolio and maintaining a Variable Portfolio a good article on the benefits of diversification on expected returns. Even touches on and includes Gold!
Vinny
A Rational Approach To Expected Returns
AUGUST 1, 2020 • RANDY KURTZ
https://www.fa-mag.com/news/a-rational- ... 57033.html
Re: Expected Returns / Enhanced Through Diversification
Posted: Tue Sep 01, 2020 5:00 pm
by Kevin K.
Thanks for sharing that article yankees60! It offers some good arguments for diversification beyond stock and bonds but if you really want to go down the rabbit hole with this check out this post over on the Mr. Money Mustache finance forums:
https://forum.mrmoneymustache.com/inves ... s-v-gurus/
You'll see that the OP is a Portfolio Charts fan (indeed he couldn't have done his impressive data crunching without the site). It's an enjoyable contrarian thread.
I think there are strong arguments for maximally-diversified portfolios that are real-world do-able, such as Tyler's Pinwheel and Paul Merriman's Ultimate, but at the end of the day I wouldn't bet money on any of them outperforming the PP or Golden Butterfly going forward.