The idea began more than 25 years ago: Use tables to show the risk and reward of different equity asset classes — along with different combinations of equity and fixed income — so that investors gain a firm understanding of the relationship between long-term return and short-term risk, and make their investment decisions accordingly. At that time, there were two tables — one for the S&P 500 (as the equity position) and a second for the Ultimate Buy and Hold combination of 10 different equity asset classes. Since then, we have added more combinations of these asset classes equity combinations. We call these the Fine Tuning Tables.

In this podcast Paul discusses and reviews 9 different combinations of equity asset classes from the stand-alone S&P 500 to the 10-fund Ultimate Buy and Hold Portfolio.

To get the most out of this podcast, Paul suggests you revisit the previous one, (Ultimate Buy and Hold Strategies: 2022 Update) and this table (Table A1).

He begins with a quick review of the previous podcast and then looks at the 9 different equity asset classes that are the basis of the 9 Fine Tuning Tables. (Table A2: Alternative Equity Portfolio Table). Then he reviews Table B1 for the S&P 500 and bond combinations. The goal is to alert users to the many risk and return lessons on this table. Following this table, he reviews the Tables B7 through B14 that represent the different portfolio combinations that can be built with the 10 funds in the Ultimate Buy and Hold Portfolio.

Those include:

Ultimate Buy and Hold

Worldwide 4 Fund

U.S. 4 Fund

Worldwide All Value

U.S. All Value

Worldwide All Small Cap Value

All U.S. Small Cap Value

S&P and Small Cap Value (50/50)

Next week’s podcast will be a discussion about the 9 different equity asset class combinations. Paul will be joined by Chris Pedersen and Daryl Bahls to help Sound Investing investors select from the variety of strategies.

Fine Tuning Your Asset Allocation: 2022 Update