Dynamic Portfolio Backtesting Scenario II: Treat Stocks and Bonds Separately

The 60% stock and 40% bond portfolio has been a cornerstone of investment practice for decades. The general idea is to allocate one’s assets in this static ratio, with occasional rebalancing to maintain it. Recent research has shown that a dynamic portfolio using conservative instruments (large cap stocks and fixed income) can outperform the 60/40 portfolio as well as the recent bull market.

This app allows you to easily backtest different dynamic portfolios rebalanced using two signals, namely, average 2, 4, 6 months returns and 12-1 month returns. We hope this app can help you better manage your 401(k) account or your IRA. Let us know how it works out for you by leaving a comment below.


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