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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 85621  
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 Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23722 of 85621
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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