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The period 1982 - 1999 (Kindergarden)

The period 1982 - 1999 (Kindergarden)

I call this investment-period the so called: "KINDERGARDEN". It was really an easy playing-field. Even ex-post one is allowed to say that - I assume. In the following chart and diagram one may see what i mean:

Portfolio-Mix (1982 - 1999), rG

If you were 48 years old in the year 1981 and started your investment-strategy in the upcoming year (1982) by allocating ca. 52% of your assets into stocks, well you may have received an Asset Allocation-Split like this one: 52% Stocks, 33% Cash, 15% Bonds. Nice outcome i may say >>> Calculating the returns of such a portfolio (rebalanced annually) one arrives at following performance-numbers:

Total Return from Jan. 1982 - Dec. 1999: +880% (before Inflation)

Annual Returns in that period: +12.8% per annum (before Inflation)

Annual Returns in that period (AFTER INFLATION): +9.25% p.a.

Taking the annual return-bars from above one can draw following nice chart (from left down to right UP). Please have a look at "my famous" Kindergarden-Investment period-Chart (performance-mountain calculated -before Inflation- ):

Ralph Gollner