A Low Cost, Fully Diversified All ETF Portfolio [View article]
A better approach to reduce the severity of drawdowns would be to significantly increase the share of bonds (approx to 50%) at the same time aplying leverage (2 to 1 is common in most stock brokerage account) - therefore even if the basic portfolio would generate meager 10-12% the leverage would allow you to reach 20%-25% p.a. with 20% drawdowns (which could be further reduced through straightforward ATM put buying [costing 3-4% a year in premiums] or Faber-style 10-month mean-crossing method).
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Latest | Highest ratedA Low Cost, Fully Diversified All ETF Portfolio [View article]