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Hi Fools,

I've been reading Merriman's Long Term Buy/Hold articles.

Best simple port, his #4: 40% short term bonds (funds), 15% S&P 500 index, 15% UC sm value, US lg value, US micro cap. He has a more complex port with international stocks.

He quotes annualized Standard Deviation for different allocations; the port above has return of 12.7% and annualized std deviation of 12.1 (%?). Now my Vanguard site allows you to construct stock/bond/cash allocations, and yields a figure of 'years with a loss', eg, 60/40 split yields, iirc, '9 of 44 yrs with a loss' (their sample is 44 yrs). They also give yrs of greatest loss/gain with a % for each.

Questions for Chin, Coolprash, and the gang:

How do you compare 'annual standard deviation' to 'years with a loss'? or what Vg figure is a better comparison?
is DFA really predictably any better if you have enough money to allocate?
what do you think of his idea of how to define value?

Basically, my style is Coffeehouse-plus-a-few, like BRK, JNJ. I might move toward his Vg funds port if I get a better understanding. Does Merriman or DFA hold any advantage, in your views?

Deac
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