The two-fund portfolio

Michael Batnick and Downtown Josh Brown are Live From The Compound to talk about a really simple way to figure out the optimal mix between stocks and bonds for individual investors – this is something everyone can do for themselves as a device to determine how much risk you can really stand.

By examining the drawdown vs returns history of a two-index portfolio, and looking at ten different incarnations of it, you can get an idea of how much downside IN DOLLAR TERMS you’d be able to live with during a worst case scenario market event.

Here’s that chart we posted in the video:

Read Michael’s post to see the chart we put up:
Un-Complicating Investing (The Irrelevant Investor)

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  1. The two-fund portfolio – Financial Solutions commented on Feb 22

    […] Michael Batnick and Downtown Josh Brown are Live From The Compound to talk about a really simple way to figure out the optimal mix between stocks and bonds for individual investors – this is something everyone can do for themselves as a device to determine how much risk you can really stand. By examining the drawdown vs returns history of a two-index portfolio, and looking at ten different incarnations of it, you c… Source: https://thereformedbroker.com/2019/02/22/the-two-fund-portfolio/ […]