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Author: tjscott0 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 62974  
Subject: The Benefits of Low Correlation Date: 3/28/2010 11:19 AM
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A Craig Israelsen article that explores low correlation & different asset classes for the 1970 to 2006 period.

http://www.indexuniverse.com/publications/journalofindexes/j...

The 7 asset [large US equity, small US equity non-US equity, US intermediate bonds, cash, REIT, commodities-14.3% each] portfolio of index funds had a small better return & much lower standard deviation when compared to other moderate balanced portfolios on a withdrawal scenario [5% annual withdrawal+3% inflation increase each year].

Now I didn't find a list the indexes used. Though from a seeking alpha article i did discover that for commodities index he used S&P GSCI Commodity Index [GSG].

The MAIN beneficial IMHO is the zero % chance of a -10% annual return.

Ok here is link to comparision chart:http://www.indexuniverse.com/publications/journalofindexes/j...

Link for info on S&P GSCI Commodity Index:http://www2.goldmansachs.com/services/securities/products/sp...
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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23722 of 62974
Subject: Re: The Benefits of Low Correlation Date: 3/28/2010 2:16 PM
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A Craig Israelsen article that explores low correlation & different asset classes for the 1970 to 2006 period.

http://www.indexuniverse.com/publications/journalofindexes/j......

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I'm not sure what conclusions you can draw from a retirement withdrawal study based on 36 years of data. That would only give you seven actual data points for a 30-year historical payout period (i.e., 1970-2000, 1971-2001, 1972-2002, ..., 1976-2006)

intercst

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