In the last blog entry I referenced a recent article in Geoff Considine’s blog, Portfolioist. This “QPP Analysis” post collects those asset classes and rebuilds them into a portfolio that is analyzed below using the software, Quantext Portfolio Planner (QPP). Platinum members are familiar with the analysis that comes from this software. If not, select the QPP option found in the right sidebar under QPP Analysis and read through some of that information.
Assumption: Readers need to know that I am still assuming the S&P 500 will grow at a rate of 7% over the next six to twelve months. I have my doubts about this percentage gain as my gut tells me it will be somewhere between 5% and 6%. Nevertheless, for this analysis I am using the 7% value.
QPP Analysis: Since Considine did not set up percentage allocations in his article, I was on my own to make those assumptions. The strange starting date of December 19, 2007 was the launch date for EMB. This avoids the problem of the short-term data. All other ETFs have been operational more than five years. I also included VEU and VEA even though Considine does not include them in his article. In the second slide I will show readers why Considine omits them.