This excerpt is from the book Global Asset Allocation now available on Amazon as an eBook. If you promise to write a review, go here and I’ll send you a free copy.
The 7Twelve allocation was proposed by Craig Israelsen in 2008. Craig is the author of three books and is a principal at Target Dale Analytics.
7Twelve is one of the more consistent portfolios, having made positive real returns in every decade.
FIGURE 53 – 7Twelve Portfolio
Source: 7Twelve Website, 2008
Figure 54 – Asset Class Returns, 1973-2013
Source: Global Financial Data