23 yo, My situation - looking for investment help - Page 2

DcifrThs · #11 10-24-2007, 11:56 PM

my current project is taking forever due to tons of data aggregation issues. i'll post it though when i'm done and i hope it will be a success.

what i can do right now though is tell you to go to your broker and allocate your account to these ticker symbols at these %s:

RYTTX 10.66%
RYVYX 8.90%
UNPIX 17.97%
GSP 22.29%
GSDAX 16.75%
VIPSX 23.44%

this portfolio gives you an expected excess return of 5.04% with an expected volatility (including the correlations of the funds to each other and their relative volatilities) of 11.20%. that is a sharpe ratio of .45, FAAARRR better than you can do without leverage (the leverage is embedded in RYTTX, RYVYX, and UNPIX)

hope this helps for now,
Barron

PS- those #s look precise but they don't have to be...i did this using my own logical assumptions backed by rigorous reading and testing but the optimization is simple. by that i mean that it isn't a die hard rule. you could fudge the #s a bit here and there if it makes it easier to allocate to or whatever and at worst end up with a .43 or .42 SR or something like that.

Gigi · #12 10-25-2007, 12:27 AM

Thanks for the percents. That's a sexy sharpe ratio.

It's funny... every time I go to Google to research something you said, this thread keeps coming up in the results.

http://www.google.com/search?q=how+to+buy+RYTTX
http://www.google.com/search?q=stock+RYTTX
---> The 2+2 Forums: How safe is the stock market?

d0nkaments · #13 10-25-2007, 10:25 PM

Sorry for the sidetrack but I don't understand why people have standing balances on their student loans if they have cash sitting around lower yield accounts. Can somebody explain to me why I always see this phenomenon?

Gigi · #14 10-26-2007, 05:45 PM

Where do you always see this? Not everyone is rational. My bank teller friend would see $50K+ non-interest bearing checking accounts, when it would only take five minutes to open and link the current account to a 5% savings.

Same goes for the case when people pay off their low rate student loan aggressive when they could earn at least the risk free rate instead.