Feb 01
Diversification Works
Investors interested in the principles of asset allocation will find this article by Geoff Considine of great interest. What does this portfolio look like going forward? Check the screen shot below for the answer.
I am using the modified asset allocation mix described by Dr. Considine. The projected annual return is 9.3% and the projected risk comes in under 15%. Scroll down to the Diversification Matrix and you will see it is only 30%. Not too bad, but not up to our goal of 40% under current market conditions.
Using these ten ETFs as the standard, we want to see if we can improve on these three metrics. If I manage to improve on this portfolio, I will post results over on the Premium Content side of ITA Wealth Management.
Premium subscription available for $5.00 per month for a limited period. I’ll likely close this offer by this weekend – 2/5/2010.