Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Anyone Using Portfolio Optimization Software?
Old 11-23-2003, 06:54 PM   #1
Full time employment: Posting here.
 
Join Date: Sep 2003
Posts: 902
Anyone Using Portfolio Optimization Software?

I recently tripped upon this series of articles and it got me to thinking that I should be using every tool at my disposal:

http://www.moneychimp.com/articles/risk/riskintro.htm

So I'm looking for reasonably priced software that will enable me to use modern portfolio theory to determine the asset mix that will provide the least risk for a given rate of return. Years ago I bought a program called "Wealth Builder" which did that, but they quit updating it, I suppose due to lack of interest. Does anyone here use such software? I'm considering two:

MvoPlus at $169.00:
http://www.effisols.com/home.htm

I've also looked at WATS at $199.00:
http://www.zunna.com/WATS/WATS.htm

Has anyone used either of these? Any suggestions for other software? I'd also be interested in hearing opinions about the value of portfolio optimization. Is it just an academic exercise, or will it likely make real money, in the real world, for those who know how to implement it?
Bob_Smith is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Anyone Using Portfolio Optimization Software?
Old 11-24-2003, 01:27 PM   #2
Recycles dryer sheets
 
Join Date: Dec 2002
Posts: 290
Re: Anyone Using Portfolio Optimization Software?

I am not familiar with such software, but I am very much aware of what others identify as a possible pitfall.

They suggest doing this kind of exercise: take the market as of 1960 (and/or 1970 and/or 1980 and/or 1990) and plug in the data that was available. You can get some really wild results. The software makes an optimization from the data that it has available. If, for example, gold has just run up to $800 per ounce, the software is likely to recommend that you buy gold.

As long as you understand this limitation of the software, it can be quite helpful (or so I have been told). It tends to chase yesterday's winners.

Have fun.

John R.
JWR1945 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
I just bought VFINX today AirJordan FIRE and Money 113 12-19-2007 07:17 AM
SWR - Amortize your portfolio RgrGd FIRE and Money 5 03-28-2007 10:29 AM
Portfolio tracking software jimhcom FIRE and Money 5 12-28-2006 07:55 AM
Conservative distribution phase portfolio peteyperson FIRE and Money 13 03-22-2005 06:48 AM
Volatility in your Portfolio ESRBob FIRE and Money 5 03-03-2005 09:09 AM

» Quick Links

 
All times are GMT -6. The time now is 07:00 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.