Fine-Tuning Your Asset Allocation (S&P 500 vs 4-Fund Strategy)
What You’ll Learn
- How to fine-tune your stock and bond allocation using historical fine-tuning tables.
- The difference between the S&P 500 and a diversified worldwide 4-fund portfolio.
- Why worst 12-, 36-, and 60-month return periods matter more than average returns.
- How Sharpe and Sortino ratios measure true risk-adjusted performance.
Key Takeaways
- Market declines are normal — your allocation should prepare you for them.
- Adding bonds historically reduced drawdowns and smoothed volatility.
- Diversification improved risk-adjusted returns, not just total returns.
- The best portfolio is one you can stick with during difficult markets.
