Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (47139)	9/26/2001 4:53:24 AM
From: JAPG	Read Replies (1) \| Respond to of 54805

UF, I wrote this post back in February that may be relevant to the discussion now: Message 15374987 Take care JAPG

To: Uncle Frank who wrote (47139)	9/26/2001 5:45:27 AM
From: Wyätt Gwyön	Respond to of 54805

hi uf, right now i'm 50% bonds. i decided on that allocation about a month or six weeks ago--basically, i decided 65% equities/35% bonds was appropriate for my age, but decided i should have +-15% leeway according to valuation factors. those factors would be the expected returns of equities, which should naturally be higher than bonds (as equities are riskier). but most credible sources i looked at showed expected returns less than bonds for the next 10-20 years. so i decided my underweight positioning would be 50/50, and then 65/35 would be neutral (when equities are normally valued) and 80/20 would be aggressive (when equities are cheap). i have a feeling i will get the chance to try out all these different ratios in the years ahead. as for the breakdown of equities, the ratios i was looking at were something like 1.5:1 US vs. Intl, 1:1.5 Growth vs. Value, and 1:1 Large vs. Small (i decided these weightings before 9/11, and may revise them; in any case i am still cash with that 50%...one decision would probably be to up Intl so that US:Intl is 50:50). REITs would be 11% of total equities (subtracted from the US portion) and Emerging around 3% (taken from Intl). real market weightings would probably put US/Intl at 1:1, though most US investors are probably more like 5:1 or higher because they don't want tracking error from the S&P. likewise, Large:Small would be at least 4:1 and Growth:Value would be at least 3:1 (a lot of people consider the S&P500 a proxy for US large growth due to its cap weighting). other considerations would be small allocations to things like a commodities index (when a good one becomes available), precious metals (despite what the goldbugs say, PMs have been a pretty horrible investment over time, with an expected return in the 2-3% range and a standard deviation greater than most stocks, but a small amount could be a good diversifier, and indeed the XAU is the one index that has really kicked butt this year), and even microcaps.