optimal portfolio mix?

[robbridg]

Has anyone tried different portfolio mixes in the 'Your Portfolio' section to try and find the most optimal mix based on history,(since 1927)? It is interesting how much your results will change based on small percentage changes to your mix.

 

[brewer12345]

Has anyone tried different portfolio mixes in the 'Your Portfolio' section to try and find the most optimal mix based on history,(since 1927)? It is interesting how much your results will change based on small percentage changes to your mix.

Optimizer results are notoriously sensitive to small changes that don't really matter in the real world. What you are seeing is how to datamine the past to trick yourself into a sense of security. Instead of moving your equity allocation 2.5632% to jibe with optimizer results, I think you would be better off taking the general lessons of what firecalc can tell you (over 60% equity allocations have done better in the past or whatever).

 

[timo2]

Has anyone tried different portfolio mixes in the 'Your Portfolio' section to try and find the most optimal mix based on history,(since 1927)? It is interesting how much your results will change based on small percentage changes to your mix.

I guess I believe in the existence of an 'most optimal' portfolio mix about like I believe in the Easter Bunny. As the idiom says "You pays your money (and you takes your chances)"

 

[bo_knows]

Optimizer results are notoriously sensitive to small changes that don't really matter in the real world. What you are seeing is how to datamine the past to trick yourself into a sense of security. Instead of moving your equity allocation 2.5632% to jibe with optimizer results, I think you would be better off taking the general lessons of what firecalc can tell you (over 60% equity allocations have done better in the past or whatever).

Totally agree with this. I think that its probably more relevant to optimize ones spending and withdrawal strategies, than it is to optimize an EXACT asset allocation.