Good overview!
Two small things:
1. via Portfoliovisualizer you can create backtests for allocations that go back further than just 5 years. It is usually interesting to see how an allocation performed in the major drawdown phases of 2001-03 and 2007-09. A pure world equity portfolio was not good at all.
2. if you have already left the equities asset class with BTC, then you can also put together an optimized portfolio with other classes, e.g. gold, bonds, etc.
In the end, it should be the Epi portfolio: 60% MSCIWorld, 20% gold, 20% BTC. 😁
Two small things:
1. via Portfoliovisualizer you can create backtests for allocations that go back further than just 5 years. It is usually interesting to see how an allocation performed in the major drawdown phases of 2001-03 and 2007-09. A pure world equity portfolio was not good at all.
2. if you have already left the equities asset class with BTC, then you can also put together an optimized portfolio with other classes, e.g. gold, bonds, etc.
In the end, it should be the Epi portfolio: 60% MSCIWorld, 20% gold, 20% BTC. 😁
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@Epi Thank you for your comments.
Yes, at first I had also considered possibly adding gold or bonds as a real multi-asset portfolio. However, the article would then have been even longer 🙈 Maybe I'll do another sequel with the Epi portfolio 😝
Yes, at first I had also considered possibly adding gold or bonds as a real multi-asset portfolio. However, the article would then have been even longer 🙈 Maybe I'll do another sequel with the Epi portfolio 😝
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•@RealMichaelScott I had also once considered a contribution to the epi portfolio. But then the subject matter got out of hand and I put it on ice for the time being. As soon as you set up complex portfolio structures, the question arises as to how it should be optimized. Max Sharpe ratio, min max drawdown, min vola, max safe withdrawal rate etc pp. Everyone has a different preference in their life situation and hardly anyone knows their own (or even wants to know), let alone the correct portfolio implementation. Here in the forum you would really have to start with the original slime, which again hardly anyone would be prepared to put up with.
So I'm happy when someone like you takes on this work and I can concentrate on what I'm still learning myself. 👍
So I'm happy when someone like you takes on this work and I can concentrate on what I'm still learning myself. 👍
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@Epi....Thank you also for your contributions, in addition to my ETFs I will now also "slowly" add crypto (ETH, BTC) and gold (Euwax Gold II) to my portfolio, it all makes sense for me...but I will invest via a savings plan, build up a little cash and then invest additionally when good opportunities arise.....
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•@jm_finance Good luck! A crucial point in the Epi portfolio is that BTC and gold are equally weighted. Very few people do this, but it makes sense because gold lowers the portfolio volatility to a similar extent as BTC increases it, so that ultimately the risk in the portfolio remains the same, but the return increases.
It is probably wisest to start slowly, as all three asset classes are currently at their ATH: Equities, gold and BTC.
It is probably wisest to start slowly, as all three asset classes are currently at their ATH: Equities, gold and BTC.
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