In my eBook I had touched on three different Bedokian Portfolio variations1, each broadly suited for investors of different age groups and/or risk profiles. Let us revisit what are the three: Young investor aged 21-35 / Aggressive investor: 40% equities, 40% REITs, 10% bonds, 5% commodities, 5% cash (we call this Portfolio 1). Middle-aged investor aged 36-55 / Moderate investor: 35% equities, 35% REITs, 20% bonds, 5% commodities, 5% cash (also known as the balanced Bedokian Portfolio, which I use most of the time as an example)(Portfolio 2). Retiree investor aged 56 and above / Conservative investor: 20% equities, 20% REITs, 40% bonds, 10% commodities, 10% cash (Portfolio 3).
What would be the performance of these three portfolio combinations? Using U.S. market data from the Portfolio Visualizer (www.portfoliovisualizer.com), let us assume a U.S. Bedokian Portfolio investor with an initial amount of USD 10,000 and does annual rebalancing. Since the site’s...