Author Topic: Interactive Historical asset allocation charts  (Read 1689 times)

bootyman

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Interactive Historical asset allocation charts
« on: April 17, 2015, 03:07:34 PM »
ANyone know where i can find a historical asset allocation chart like this expecept going forward to this year 2015?

https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-risk

Aphalite

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Re: Interactive Historical asset allocation charts
« Reply #1 on: April 17, 2015, 03:13:07 PM »
Don't look at volatility as a measure of risk, if you need a simple measure of risk, look at market earnings yield vs treasury yield

Here's a shortcut website for the sp500: http://www.multpl.com/s-p-500-earnings-yield

Here's treasury yield: http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield

The first is backed by the earning power and underlying assets of the top 500 companies as selected by S&P (excludes some great foreign companies as well as some of the bigger US companies as well, like Tesla or Netflix)

The second is backed by the taxing power/authority of the US government

If the first is ever approaching the second, your opportunity cost adjusting for risk is better by holding the second, because taxing power of the US government is stronger and further reaching than the aggregate earning power of the sp500 - please also take taxes into consideration, don't blindly sell taxable holdings without calculating what it will cost you in capital gains tax first
« Last Edit: April 17, 2015, 03:17:21 PM by Aphalite »

Indexer

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Re: Interactive Historical asset allocation charts
« Reply #2 on: April 17, 2015, 03:54:04 PM »
ANyone know where i can find a historical asset allocation chart like this expecept going forward to this year 2015?

https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-risk

Are you looking at the chart that goes from 100% bonds to 100% stocks?  It is one of my favorite charts.  I don't know where there is one that is current, but I know how you can make one rather easily. 

Look at the Vanguard Lifestrategy funds.  They go from 20/80, to 40/60, to 60/40, to 80/20.  And since they are made up of huge index funds that own essentially everything in the world they will give you a good idea of how allocations have done, and they are more up to date.