Ghost of Igloi wrote:
OK, see the following....
I can find other examples if you like.
I will go back to my statement, if you can lower the portfolio volatility you will compound at a faster rate. The argument is not betting one asset class against another.
I am a bit surprised that you provided a link which in no way supports your claim. Indeed, it provides (with essentially zero details) a graph showing your 90/10 portfolio being trounced by an undefined index.
I am not very surprised that you did not answer my question since we both know (or at least I hope you know) that you are wrong.
Look, this is all readily calculable. Just choose the data set you want to look at and let us calculate this publicly.
We can do the calculations publicly.
What data sets do you wish to consider? I would prefer to use indices for which the data is readily available, which represent the broad markets reasonably well, and which go back to 1926 (give or take).
I suppose we will also have to choose a time frame for the holding period. I would suggest 20 years but if you wish to choose 15 or 30 or...that would be fine.