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You are here: Home / Archives for asset allocation assumptions

525 Plus: Banning Chinese Stocks and Reviewing a Paper on U.S. versus Non U.S. Stock Returns

May 24, 2025 by David Stein · Updated May 24, 2025

In Plus episode 525, we analyze the risk of the Trump Administration banning U.S. citizens and entities from owning Chinese-listed stocks, including stocks held in ETFs and mutual funds. We also discuss two papers by AQR Capital Management on U.S. versus non-U.S. stock returns. … [Read more...]

Filed Under: Money Plus Tagged With: AQR, asset allocation assumptions, China, expected returns

508 Plus: Annual Asset Class Expected Returns and Ranges Update

January 25, 2025 by David Stein · Updated February 4, 2025

This week on Plus episode 508, we review the revised asset class expected returns. We discuss the process, changes to the assumptions, and tools available that incorporate the revised assumptions. … [Read more...]

Filed Under: Money Plus Tagged With: asset allocation, asset allocation assumptions

461 Plus: Updated Expected Returns, Index Rebalancing, and Portfolio Questions

January 13, 2024 by David Stein · Updated January 26, 2024

In Plus episode 461, we review the changes to the Money for the Rest of Us Plus expected return assumptions and discuss the resources available on the site for modeling portfolios using the return assumptions. We answer a question on how stock index providers, such as S&P, handle share count changes for determining the weighting of a holding within the index. Finally, David answers some questions on his portfolio, including a review of the asset category ranges he has had for the past … [Read more...]

Filed Under: Money Plus Tagged With: asset allocation, asset allocation assumptions, expected returns, index rebalancing, indexes, preferred stocks

229: Stop Maximizing Your Returns Using Modern Portfolio Theory

November 7, 2018 by David Stein · Updated May 26, 2021

Why modern portfolio theory is a defective way to build out an investment portfolio. This episode explains a better approach to asset allocation. In this episode you’ll learn: What are the inputs needed to compile an asset allocation using modern portfolio theory.What are the defects with modern portfolio theory.Why we should be minimizing our maximum regret rather than maximizing our returns.A more flexible approach to asset allocation that isn't reliant on modern … [Read more...]

Filed Under: Money Plus, Podcast Tagged With: asset allocation, asset allocation assumptions, expected returns, Hunt (Ben), investing rules, modern portfolio theory, MPT, rules of thumb, tail events, tail risk

178 Plus: Retirement Allocations, MLP Update and Forecasting Errors

October 28, 2017 by David Stein · Updated May 2, 2022

This week October 28, 2017 on Money For the Rest of Us Plus, we look at two types of forecasting errors for future returns. We address a member's question who is concerned about the 70% of his portfolio he says is languishing in cash and another who is considering stop limit orders. We answer a member's question regarding rental real estate and reducing exchange rate volatility. Finally, we discuss the current environment for master limited partnerships. … [Read more...]

Filed Under: Uncategorized Tagged With: asset allocation, asset allocation assumptions, investing cash, MLPs, prediction

177 Plus: Asset Allocation, Expected Returns and Concentration Risk

October 23, 2017 by David Stein · Updated May 19, 2021

This week October 20, 2017 on Money For the Rest of Us Plus, we look at whether an aggressive 90% equity allocation can be expected to outperform a more diversified conservative allocation over a decades long holding period. We explore whether one should have higher expected returns over a 30 year time horizon under the assumption that 10 year expected returns are lower due to higher valuations and that once valuations normalize, expected returns should be higher. We look at asset … [Read more...]

Filed Under: Uncategorized Tagged With: asset allocation assumptions, member portfolio review, portfolio concentration

172 Plus: Whole Life Insurance, Venture Capital and a Weird Portfolio

September 16, 2017 by David Stein · Updated April 29, 2021

This week September 16, 2017 on Money For the Rest of Us Plus we look at how to evaluate whole life insurance. We see whether venture capital is still risky if the companies have "skin in the game" and their management teams are committed to be successful. Finally, we review JP Morgan's asset allocation assumptions over the next 10 to 15 years and a "weird" portfolio built from them. … [Read more...]

Filed Under: Uncategorized Tagged With: asset allocation assumptions, freezing your credit, Newfound Research, portfolio, venture capital, whole life insurance

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