Originally Posted by audreyh1
Same here. I'm glad for those wilder years in the model that make outcomes 5-10% or so worse.
+1 for including grey-to-black swans. Of course when backtesting something like that, all you have are the returns associated with those events. You don't get all of the other things that go with them which might have affected you personally, such as being drafted into a war, hyperinflation, a worldwide flu epidemic, inability/ability to log into your broker and buy or sell nearly immediately, etc. A lot of those things went hand-in-hand with the returns that occurred back then. On the other hand, we can surely imagine events that could happen in modern society that could have similar effects on returns as happened in the past. So include them, why not. But total judgment call regarding whether and how much you try to do something to your portfolio to try and mitigate the worst of them.