I’ve posted an article at the www.ValueWalk.com site entitled The Investment Strategy Tester: Part One: Low Stock Allocations Can Be Riskier Than High Stock Allocations.
Juicy Excerpt: Going with what would generally be viewed as an insanely high stock allocation does not appear to carry all that much risk. At 10 years out and at 15 years out, the 100-percent-stocks portfolio shows both higher possible returns and worse worst-case scenarios; that’s a finding consistent with the conventional thinking that higher stock allocations provide potentially higher returns at the cost of added risk. However, this is no longer the case from Year 20 forward. At Year 30, the 100-percent-stocks portfolio offers significantly greater upside combined with a worst-case-scenario no worse than that offered by any of the other portfolios and better than the 20-percent and 50-percent portfolios. Stocks are pretty darn appealing when selling at reasonable prices!