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Author: Rayvt Big gold star, 5000 posts Top Favorite Fools Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Re: Hi gang... wow!!! Date: 9/19/2013 3:17 PM
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still haven't heard an answer of what 2 markets he is 'mixing' at a 50/50 ratio.

You missed it. Right there in one post:"(S&P500) & (10 yr Tbill)".

And in another post: "A 50/50 asset allocation has 50% in the S&P500 and 50% in US Treasuries. That's your "reserves" right there, that 50% in treasuries."

And in the spreadsheet (which, granted, had just been uploaded):
Asset Allocation for the S&P500 portfolio               
Class Weighting
S&P500 6 50%
10Yr Tbill 6 50%


thus, a risk-weighted allocation would be 66%/33% market-to-reserves
I hate it when people try to poke holes in an argument by quibbling, so I try to obviate the possibilty of a quibble. 50/50 is unquestionably less risky than 66/33. Lower return, too, so if the 50/50 return is high enough while being less risky than 66/33, then there is no need to examine the 66/33 stats; 50/50 tells you everything you need to know.
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