Oct 04

Asset Allocation Test In Progress

Tag: Asset Allocation, Risk Management — Physlab @ 3:11 pm

I am investigating software that will aid in the development of portfolio asset allocation, reduction of risk, and give some insight into what asset classes to emphasize in the coming year.  Look for more information beginning sometime around the middle of November.  There is a high probability a new portfolio will be launched using these additional asset allocation tools. Specific details will be made available to Premium Content subscribers.

I just finished building a spreadsheet using the asset allocation targets of the Passive Portfolio.  The projected return is 11.8% with a standard deviation of 8.75%.  The S & P 500 is projected to return 8.3% with a standard deviation of 15%.  While I don’t expect to see anything close to an 11.8% return next year, I do like the fact that the SD is lower than the S & P 500 due to broad diversification.

Lowell Herr

Photograph: Venice, Italy

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