SI
SI
discoversearch

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.
Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?


To: Justa Werkenstiff who wrote (1157)9/23/1998 3:17:00 PM
From: Lars  Respond to of 15132
 
Justa

>>>
Lars: Nice post from the WSJ re asset allocation. Reminds me of the study that Brinker often quotes where you can get about 80% of the return of the S & P 500 with a 50%/50% mix of stocks and five years treasuries.
>>>
I find it financially comforting to sit back and reflect on this type of data. Anyone can succumb to the daily "noise" of the market. Your asset allocation is key. There are articles arguing against the theory behind this approach but I believe the major points stand.

If anything should be questioned it should be how the PhD's studied and calculated the results for small caps.

>>>
Re: "S&P 500 for stocks / Ibbotson Intermediate Bond Index for bonds"

I would recommend that anyone interested in historical return information for stocks and bonds go to their better business library and review Ibbotson's work. This work is often quoted in the press and provides historical data going back to 1926. The tables are great. You can perform a number of different scenarios and measure your thinking against history. Fun for the family too!
>>>
Great point. I enjoy reading their annual (?) update books. I just don't sell Mary Kay Justa. HA!

>>>
Glad to see Warren is buying today. Thanks for making the call to him for me.
>>>
I am relieved too. I caught him just before he went to lunch at Gorat's. I promised him a case of Cherry Coke as a thank you for helping us. Ha!