The standard ‘balanced portfolio’ has never looked worse

You and Amazon AMZN, -0.26% boss Jeff Bezos, for example, have an “average” net worth of about $100 billion. That’s true even if you don’t have a nickel to your name. He has about $200 billion, and there are two of you.

If you’re thinking somewhere between 7% and 9% a year, you’re in good company. Most of the managers of public pension funds, for example, are assuming they’ll get somewhere in that range. And that’s what conventional wisdom on Wall Street will tell you that you should get from a so-called “balanced portfolio” of 60% U.S. stocks and 40% U.S. Treasury bonds.Going back to the 1920s, for example, the average amount that so-called “balanced portfolio” earned in any given year was 9.0% .

Hussman, to be sure, has been a perma-bear for over a decade. But his analysis isn’t simply based on opinions, which are subject to disagreement, but math, which isn’t. In a nutshell: Based on his data, the 60/40 portfolio today is about as expensive in relation to fundamentals as it has ever been on record. It is valued at about three times the “average” price. So in what world can we expect “average” returns?

but in the 40% we will have to increase the allocation to Investment Grade Credit and perhaps MBS. Election2020 COVID Covid_19 coronavirus StockMarket BREAKING BreakingNews FridayMotivation FridayThoughts

Nonsense

PumpAndDump

Instead 90/5/5 stock/bond/treasuries and go 50/50 bond/stock 5 years before retirement

richardcalhoun Gold - Bitcoin - Commodities.

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