There's an excellent new article on the Portfolio Charts site that should be of special interest to those trying to avoid "left tail" risk while still enjoying decent returns:
https://portfoliocharts.com/2021/12/16/three-secret-ingredients-of-the-most-efficient-portfolios/
There's much of interest in the piece but one of the things that stood out for me is the counterintuitive nature of many of the most successful (in terms of risk-adjusted returns) allocations. It's fascinating to see how including small amounts (~10%) of assets many of us have little or no interest in owning (long-term Treasuries, US small-cap value, gold most of all) has dramatically boosted safe withdrawal rates.
If the original article isn't enough it has spurred a very lively (and epic in length) thread on Bogleheads:
https://www.bogleheads.org/forum/viewtopic.php?f=10&t=364950
https://portfoliocharts.com/2021/12/16/three-secret-ingredients-of-the-most-efficient-portfolios/
There's much of interest in the piece but one of the things that stood out for me is the counterintuitive nature of many of the most successful (in terms of risk-adjusted returns) allocations. It's fascinating to see how including small amounts (~10%) of assets many of us have little or no interest in owning (long-term Treasuries, US small-cap value, gold most of all) has dramatically boosted safe withdrawal rates.
If the original article isn't enough it has spurred a very lively (and epic in length) thread on Bogleheads:
https://www.bogleheads.org/forum/viewtopic.php?f=10&t=364950