Ed_The_Gypsy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I was going over some old articles and found this one:
A Simple Way To Outperform The Market With Beta Power | Seeking Alpha
It reminded me that the market is known to track the inverse of the long treasury bond.
Wellington is my current yardstick. Its AA is roughly 60/40 equities/bonds. Just for grins, I went back to Yahoo Finance for historical data for VTI (total market) and TLT (20+ year treasuries) for total return. The data was only available for 13 years back. I made a 60/40 portfolio and rebalanced at the beginning of each year. I was surprised that this mix gave a 9.46% total return compared to VWELX at 8.62%.
Remembering that Small Cap Value outperforms the total market over time, I replaced VTI with VISVX and TLT with VUSTX. This mix gave a total return of 8.97% over 17+ years while VWELX only gave 7.4%. Very interesting! I may want to reconsider VWELX as my yardstick.
Now, I want to go back to 1977, which is the furthest back I can get total return data for ^TYX, long-term treasuries, because that includes that last time interest rates went up (and strongly, to boot!). This could be a very interesting period. My problem is that I can't find results for SCV total return that far back. The first S&P500 index fund was created in 1975, so it may be possible there is a SCV fund as old as 1977, but if not, maybe the desired data is somewhere.
I have gone to the Kenneth R French (of Fama and French) data library, but I am lost in the tall grass there. Kenneth R. French - Data Library
Can someone point me in the right direction? Or maybe explain how to dig that info out of Prof. French's web site?
Much obliged.
A Simple Way To Outperform The Market With Beta Power | Seeking Alpha
It reminded me that the market is known to track the inverse of the long treasury bond.
Wellington is my current yardstick. Its AA is roughly 60/40 equities/bonds. Just for grins, I went back to Yahoo Finance for historical data for VTI (total market) and TLT (20+ year treasuries) for total return. The data was only available for 13 years back. I made a 60/40 portfolio and rebalanced at the beginning of each year. I was surprised that this mix gave a 9.46% total return compared to VWELX at 8.62%.
Remembering that Small Cap Value outperforms the total market over time, I replaced VTI with VISVX and TLT with VUSTX. This mix gave a total return of 8.97% over 17+ years while VWELX only gave 7.4%. Very interesting! I may want to reconsider VWELX as my yardstick.
Now, I want to go back to 1977, which is the furthest back I can get total return data for ^TYX, long-term treasuries, because that includes that last time interest rates went up (and strongly, to boot!). This could be a very interesting period. My problem is that I can't find results for SCV total return that far back. The first S&P500 index fund was created in 1975, so it may be possible there is a SCV fund as old as 1977, but if not, maybe the desired data is somewhere.
I have gone to the Kenneth R French (of Fama and French) data library, but I am lost in the tall grass there. Kenneth R. French - Data Library
Can someone point me in the right direction? Or maybe explain how to dig that info out of Prof. French's web site?
Much obliged.