Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Are you tilted? (Frank Armstrong)
Old 06-03-2006, 02:25 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,551
Are you tilted? (Frank Armstrong)

It’s really pretty easy to design a more “efficient” or optimal portfolio. It’s actually elementary stuff taught in almost every graduate finance class. It’s not a state secret, and it’s not rocket science.

First, we can jettison a boatload of risk by simply shifting from a domestic to a global portfolio. We will have an almost identical rate of return expectation at significantly lower risk. (A global portfolio would have a proportional weighting of all the global equities rather than just the United States. To greatly oversimplify, in round numbers this might be a 50/50 domestic/foreign portfolio.)
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd 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 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: Are you tilted? (Frank Armstrong)
Old 06-03-2006, 05:27 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
Re: Are you tilted? (Frank Armstrong)

These efficient frontier guys are too much- they all make their money by telling others that real money cannot be made, and billing them for this service.

I prefer to emulate people who have made money in the markets, not servicing* the markets.

"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Re: Are you tilted? (Frank Armstrong)
Old 06-03-2006, 06:16 PM   #3
Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,488
Re: Are you tilted? (Frank Armstrong)

we can jettison a boatload of risk by simply shifting from a domestic to a global portfolio
i suspect this is a gross oversimplification.* most all US individual investors live within country, and when investing domestically avoid a boatload of risk that foreign investors assume when investing in the US.* this reduced risk should result in a portfolio more heavily weighted toward domestic issues.*

stated a bit differently, take two identical investements which differ only in that one is domestic, the other foreign.* the foreign investment is subject to currency risk while the domestic issue is not.* add to this additional risks reflecting relative policitcal stablility, legal protection, accounting standards and transparency, market efficiency etc. etc. etc. and the result would/should be an overweighting of domestic investments.

d is offline   Reply With Quote
Re: Are you tilted? (Frank Armstrong)
Old 06-03-2006, 08:32 PM   #4
Recycles dryer sheets
Papi's Avatar
Join Date: Jan 2006
Posts: 90
Re: Are you tilted? (Frank Armstrong)

Yeah, another advisor I had read advised somthing similar.* I think it was Meriman, but I'm not positive.* Their argument was that you need to split your domestic investments in half and go International because you do not want what happened to the Japanese market happen to you.* To a point I agree, but not going a full 50% international.* * I feel like if the US markets were to implode, then just about everything would implode as well (except perhaps China )
Here's to FIRE
Papi is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
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
Frank Armstrong PJ03 FIRE and Money 3 01-11-2006 02:32 PM
Frank Armstrong Examples WilliamG FIRE and Money 0 03-08-2005 05:56 AM
Frank Partnoy's "Infectious Greed" Nords FIRE and Money 5 08-15-2004 09:17 AM

» Quick Links

All times are GMT -6. The time now is 03:03 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.