Max Money Blog

Stretch your dollar and grow your nest egg.

Archive for June 30th, 2008


Lazy PortFolio Performance Numbers


Updated through June 27th, 2008

Portfolio Name Stocks Pct. Correlation to SP500 Standard Deviation One Month Return Three Months Return Six Months Return One Year Return Two Year Return Five Year Return Six Month Max Draw-Down
Six Ways From Sunday 67% 0.83 4.68 -4.40% 3.58% 0.48% 5.19% 27.76% 112.58% -9.32%
Ted Aronson 80% 0.91 5.49 -7.46% -0.63% -8.75% -4.07% 24.62% 104.06% -12.28%
Merriman 60% 0.92 4.23 -6.52% -2.34% -6.77% -5.07% 17.26% 74.11% -8.29%
David Swenson 70% 0.94 4.86 -7.01% -2.61% -6.46% -6.04% 14.37% 72.23% -9.04%
Margritaville 67% 0.88 4.21 -5.93% -1.68% -7.28% -4.33% 18.49% 70.67% -9.20%
Second Graders 90% 0.94 5.49 -7.71% -1.93% -10.43% -9.55% 14.80% 70.24% -12.53%
Five Fold 60% 0.92 4.16 -6.19% -2.92% -4.56% -4.10% 14.20% 69.13% -8.11%
Four Square 50% 0.82 3.17 -4.54% -2.17% -4.79% -0.59% 19.33% 63.39% -6.63%
Bernstein No Brainer 75% 0.94 4.86 -6.89% -1.89% -9.00% -9.68% 12.82% 63.01% -11.14%
Bernstein SmartMoney 60% 0.96 4.37 -6.57% -1.92% -7.31% -7.83% 11.35% 58.48% -8.48%
Bill Schultheis Coffeehouse 60% 0.96 4.35 -6.56% -2.51% -6.54% -8.80% 8.47% 53.10% -8.10%
Couch Potato 50% 0.89 2.88 -3.57% -0.96% -3.95% -1.36% 13.64% 41.39% -5.29%
S&P 500 100% 0.95 6.19 -8.57% -3.35% -13.41% -15.10% 3.16% 29.68% -13.87%

Higher the percentage of stocks you have in a lazy portfolio, higher is your portfolio’s standard deviation.

All of the lazy portfolios cited above beat S&P 500 index in every timeframe.

Not only that,  but they also get you there with a lower draw-down i.e. fall off the peak.