2007 Returns

Market downturn taking a bite out of your portfolio? A simple diversified approach can help ease the pain.

Over the past year I have mentioned a number of portfolio allocations and strategies. Over the next week I will touch on some with resulting performance for 2007:

(Also here is a link reviewing some of the “lazy” portfolios.)

Individual Asset Classes Returns, Timing Returns (from this model)
US Stocks 5.5%, 5.5%
Foreign Stocks 11.6%, 11.6%
Bonds 10.17%, 8.08%
Commodities 33.84%, 27.34%
Real Estate -17.83%, -5.3%

5 Asset Class Equal Weighted Monthly Rebalance (Endowment Style) 8.06%, 8.37%
5 Asset Class Equal Weighted Yearly Rebalance (Endowment Style) 8.65%, 9.44%

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Cool video of the day – Radiohead “All I Need”