3 simple and strong portfolios

60/40

  • 60% Stocks
  • 40% Bonds

MOST SIMPLE COMPOSITION WITH VERY GOOD PERFORMANCE, BUT ALSO MORE RISKY, BECAUSE  LESS DIVERSIFIED

 

It can suffer high volatilities and an important Drawdown in some years, even if they are strongly attenuated compared to stock only,

Need ability to support these periods psychologically and financially

Big drop during the subprime for example, big performance after but it took a while.

 

 

All weather portfolio

 

  • 30% Stocks / indices (S & P 500, Vanguard, MSCI)
  • 40% Long Term State Bonds
  • 15% State Bond Intermediate Term
  • 15% GOLD (or 7.5% in Gold and 7.5% in commodities)

THE MOST DIVERSIFIED, THE LESS RISKED AND THE MOST RELIABLE,
IT IS SUITABLE FOR CRASH, MARKETS WITHOUT TRENDS, AND AGAINST RISKS ON INDIVIDUAL STOCK

 

 

 

Permanent portfolio

 

  • 25% in US stocks
  • 25% state bond
  • 25% precious metals
  • 25% in cash

AN ALTERNATIVE TO THE ALL WEATHER PORTFOLIO, A LITTLE LESS PERFORMING

 

 

 

Performance of these portfolios can be improved by refining the choice of different assets.

Backtests of these portfolios can be done using the tool: https://www.portfoliovisualizer.com/

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