Q: I am very pleased with the Portfolio Analytics, and have found it to be a quite useful tool. Thank you for building this product.
Broadly, I would like to better understand how you developed your recommended sector/geographic allocations in the Asset Allocator. In particular, I would like to understand:
1) Certain assets (e.g. gold, REITs) are missing or very low percentages. What is the basis for this recommendation in the Portfolio Analytics?
2) Most if not all broadly based core index funds have a greater allocation to financials than the 15% recommended in the Portfolio Analyzer. Why are you recommending a 15% allocation?
3) Are your recommended asset allocation percentages static, or are you planning on adjusting these percentages over time as markets change?
4) Given that markets typically revert to the mean, how do your recommended allocations compare to the mean sector percentages of major indexes, for example EAFE or the S&P500?
Any insights you can offer to help me better understand the basis for how these asset allocations were developed would be most helpful. Thank you for this excellent service!
Broadly, I would like to better understand how you developed your recommended sector/geographic allocations in the Asset Allocator. In particular, I would like to understand:
1) Certain assets (e.g. gold, REITs) are missing or very low percentages. What is the basis for this recommendation in the Portfolio Analytics?
2) Most if not all broadly based core index funds have a greater allocation to financials than the 15% recommended in the Portfolio Analyzer. Why are you recommending a 15% allocation?
3) Are your recommended asset allocation percentages static, or are you planning on adjusting these percentages over time as markets change?
4) Given that markets typically revert to the mean, how do your recommended allocations compare to the mean sector percentages of major indexes, for example EAFE or the S&P500?
Any insights you can offer to help me better understand the basis for how these asset allocations were developed would be most helpful. Thank you for this excellent service!