I thought it would be fun to challenge the community to build the portfolio the perform the best throughout recent history. There is a website that allows you to do just that: http://ift.tt/1GHRkBH
A few rules
- (1) This is a limitation of the website but also a good rule. Your asset allocations cannot change over time. That is, if you want to be 80/20 stocks and bonds, that's what you'll be for the whole test. You can control how frequently you re-balance, but you cannot change your allocation percentages over time. So no selling right before the crash.
- (2) Of course, no cherry picking things picking things that you happen to know performed well. No fair putting Apple in your portfolio. Focus on broader asset classes: Stocks, bonds, small cap, gold, international etc.
- (3) You'll have to find funds that are at least 10 years old. The older the better. I'd love to see a portfolio that went through both the 2000 and 2008 crashes, but not many funds are that old.
Obviously you cannot predict the future by looking at the past, especially just a decade or so of the past, but if you are trying to build a portfolio for the future, it'd be good to know how we'll you'd do in the past.
Submitted March 16, 2017 at 10:14AM by jatjqtjat http://ift.tt/2mwsjoW
