I’ve added an article entitled About Our Unique Investment Strategy Calculator to the “Strategy Tester” section of the site. It sets forth 10 basics questions and answers about the new Investment Strategy Tester calculator.
Juicy Excerpt: The Strategy Tester runs 1,000 tests of any of the scenarios examined by The Scenario Surfer and reports the probabilities of various outcomes. For example, you might want to know whether there are any 30-year return sequences starting from the top of the bubble that might come up in which rebalancing to an 80 percent stock allocation would provide better results than a simple Valuation-Informed Indexing strategy. The calculator reports that there are very few. At 30 years out, the worst-case scenario for the VII strategy is better than nearly 50 percent of the possible scenarios for the rebalancing strategy. The most likely scenario for the VII strategy shows a portfolio balance about 50 percent larger than the portfolio balance for the most likely scenario that applies for the rebalancing strategy. Hundreds of different strategies can be compared through use of the new calculator.
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