Switching C Returns Graphs

Here are graphs of Switching C real, annualized, total returns.

Switching C

Switching C optimizes Year 10 returns when P/E10=14 in a long lasting (secular) Bear Market.

The P/E10 thresholds are 10-18-30. The allocations are 100%-80%-20%-0%, respectively.

Switching C is assures a high probability of a good return at Year 10. It takes the spread in possible outcomes into account.

Graphs

Here are the Year 10, 20 and 30 annualized, real, total returns of Switching C compared with that of a portfolio with a 50%-50% fixed allocation. The non-stock component is 2% TIPS.

Observation

Switching C does much better than a 50%-50% fixed allocation.

Have fun.

John Walter Russell
July 30, 2009