Comparing a 50/50 Portfolio with a 100% Stock Portfolio (1-Year Holding Periods)

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.

A 50-50 Portfolio vs. a 100 Stock Portfolio

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)

5 responses to Comparing a 50/50 Portfolio with a 100% Stock Portfolio (1-Year Holding Periods)

  1. Could you add in a ‘winning periods’ section? In this example the 100 portfolio wins, but if the averages work out because there are large spikes of good periods rather than it just is better more often.

  2. I’m about 80/20 stock vs bonds in my 401k. Have you looked at other percentage splits?

  3. Looks like the test works.

    Thanks for the updated data, it’s pretty interesting seeing the distributions side by side like that. Now if only there were a way to know where the 25-40% periods are going to be ahead of time.