On Tue, 29 Apr 2008 04:04:13 -0500, "Walter_Slipperman"
<WalterS@[EMAIL PROTECTED]
> wrote:
>I also would like some of your thoughts on the volatility of this
****tfolio.
>I went back to a quarterly billing statement from last year where the fee
>was based on the value of the account on October 17th 2007.
As you have noted, your volatility is less than that of the S&P 500.
Another way at looking at risk, or risk-adjusted return, is the Sharpe
ratio. http://www.stanford.edu/~wfsharpe/art/sr/sr.htm
Although it can be computed versus various indices, classicly the
benchmark
is a risk-free investment. For this purpose, I chose to use the return on
a one-year Treasury as of the first of each year.
For 2000-2007, the Sharpe ratio of the S&P500 was -1; and yours was +49.
Here is some data (the Indices are total return indices):
Year Treas SP500 MD400 SC600 Slippman
2000 5.98% -9.11% 17.51% 11.80% 4.33%
2001 5.32% -11.88% -0.60% 6.54% 0.02%
2002 2.17% -22.10% -14.51% -14.63% -1.39%
2003 1.32% 28.68% 35.62% 38.79% 15.91%
2004 1.29% 10.88% 16.48% 22.65% 11.76%
2005 2.79% 4.91% 12.56% 7.68% 6.28%
2006 4.38% 15.79% 10.32% 15.12% 13.23%
2007 1.00% 5.49% 7.98% -0.30% 2.30%
Sharpe Ratios 2000-2007
SP500 MD400 SC600 Slippman
-1 51 49 49
>And then there taxes. I know I paid a lot of taxes last year and maybe
if
>that was being deducted from the ****tfolio things wouldn't look anywhere
>near as decent.
All of my stock and cash equivalent investments are in Roth or
Conventional
IRA's, so I have not looked into methods of minimizing the tax burden on
the returns.
--ron
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