By JLP | March 6, 2013
Here is the latest from my portfolio research. Below is a graphic comparing a 50% Stocks/Bonds portfolio with a 100% Stocks portfolio. I used monthly total returns for both asset classes. As the notes point out, I assumed $100 invested at the beginning of each month for 12 months to calculate the “Ending Value.”
There were 1,033 1-year rolling periods from January 1926 through December 2012. This is a summary of those findings. If you have any questions, please feel free to leave a comment or email me directly at JLP – at – AllFinancialMatters.com. I’m working on 3-year, 5-year, 10-year, 20-year, and 30-year rolling periods.
UPDATE: As per Traciatim’s request, here is a PDF of return dispersion for the two portfolios: Comparing a 50-50 Portfolio with 100 Portfolio (Dispersion of Returns)