Over the National Day holiday I was fiddling around with an online backtesting tool at www.portfoliovisualizer.com, which I had used it for my post “Keep Calm and Ride The Waves” back in April 2017, and a thought came up; how would The Bedokian Portfolio fare in the US financial market.

Using the Balanced Bedokian Portfolio (35% equities, 35% REITs, 20% bonds, 5% gold and 5% cash), I backtested it and here are some of the findings:

  • The Compound Annual Growth Rate (CAGR) for the period of 1994 to 2016 was 8.66%.
  • If US$10,000 were invested in January 2001, with annual rebalancing, it would return US$33,824 (not adjusted for inflation) by December 2016.
  • If the 20% bond component were made up of US Long Term Treasuries, it would return slightly more than an all-equity portfolio (US$61 more) for the period of 2007 to 2016…