Based on this discussion--and this comment especially--I thought I'd just pose the question to the sub: Does a portfolio with a light fixed-income allocation relative to equity (say, somewhere between 95-5 and 80-20) ever outperform an all-equity portfolio (100-0) in absolute terms over a long (30-year; 40-year) time period? If so, how often? Important assumptions: dividend reinvestment occurs; rebalancing occurs. Would love to hear if people have considered this before, either or both theoretically or in terms of actual market data.
Edit: I'm coming at this from a U.S. perspective, but I'm curious about it from an other-markets perspective too. I.e., maybe the answer is different depending on the country in question.
Submitted October 22, 2018 at 09:00AM by MrRothThrowaway2 https://ift.tt/2yskEkC
