My latest for Alpha Baskets covers a lot of ground from active versus passive, what investors should really be comparing themselves to and an investment philosophy that is similar to the 75/50 portfolio.
From the post;
Roberts showed the results of applying a strategy akin to the 75/50 portfolio (although his model was different) in isolating how crucial it is to avoid large declines or the full brunt of large declines anyway. As a reminder the 75/50 seeks to capture 75% of the upside with just 50% of the downside. There will be years of “underperformance” only tracking 75% of the bull market but the way the math has historically worked out it is more than made up for during the bear phase.
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