Balanced Strategy Performance (as of 7/19/2024)

The chart below compares the performance of our Balanced investment strategy to a typical “buy and hold” portfolio consisting of 60% stocks and 40% bonds. The Balanced strategy has been consistently profitable, with a compound annual growth rate (CAGR) of 10.1%. An initial investment of $1,000 in 1996 would be worth $14,658 today [1].

Strategy: Balanced 60/40 Benchmark [2]
Compound Annual Growth Rate [1] 10.1% 8.1%
Standard Deviation [3] 8.2% 10.7%
Maximum Drawdown [5] -17.8% -29.8%
Sharpe Ratio [4] 0.88 0.53
Growth of $1,000 invested in 1996 $14,658 $8,874

Annual Performance

Year Balanced Strategy 60/40 Benchmark
1997 14.05% 23.53%
1998 9.13% 20.18%
1999 20.81% 11.72%
2000 12.30% -1.49%
2001 2.61% -4.32%
2002 10.53% -7.87%
2003 20.69% 17.73%
2004 16.08% 8.11%
2005 9.35% 3.93%
2006 19.02% 10.52%
2007 11.73% 7.23%
2008 13.99% -14.92%
2009 7.26% 13.18%
2010 15.61% 12.78%
2011 15.71% 7.39%
2012 7.56% 11.06%
2013 6.66% 16.95%
2014 8.04% 11.70%
2015 -5.18% 1.36%
2016 4.49% 7.60%
2017 7.79% 14.04%
2018 -5.07% -2.34%
2019 12.82% 21.94%
2020 10.17% 14.93%
2021 15.65% 15.92%
2022 -3.53% -16.97%
2023 4.95% 17.16%
2024 9.26% 9.66%

Monthly Strategy Performance

Year JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Year
1996 2.1 2.2 3.1 5.0 12.93%
1997 1.3 0.9 -1.5 -1.3 2.5 3.5 3.0 -2.8 6.4 -0.6 0.6 1.6 14.05%
1998 0.6 1.4 2.8 0.2 0.3 0.5 -1.1 0.8 2.7 -0.8 0.7 0.9 9.13%
1999 0.3 -3.2 5.8 4.9 -0.8 2.8 -0.8 0.7 2.7 -2.1 1.0 8.4 20.81%
2000 1.2 3.3 0.7 -0.9 0.9 2.6 0.4 1.1 -0.6 -1.0 1.3 2.8 12.30%
2001 0.8 0.1 -3.0 0.1 -0.5 2.6 0.2 2.1 -0.4 0.9 -1.9 1.6 2.61%
2002 0.9 1.6 1.6 1.5 2.1 -0.9 -1.4 3.7 2.6 -4.0 -0.4 2.9 10.53%
2003 1.8 0.8 -5.2 2.8 6.5 -1.1 0.6 3.3 2.7 0.8 1.9 4.6 20.69%
2004 3.1 2.4 2.2 -9.6 2.5 0.2 1.2 2.8 2.5 3.2 2.6 2.6 16.08%
2005 -0.1 2.3 -1.8 -0.8 1.6 2.0 2.4 0.4 1.3 -4.5 2.5 3.8 9.35%
2006 5.0 -0.7 2.8 1.8 -3.2 -0.8 1.9 1.5 0.7 3.4 3.5 1.8 19.02%
2007 1.8 1.5 -0.9 1.3 0.8 -1.7 1.0 -0.2 2.3 3.8 0.4 1.0 11.73%
2008 3.4 3.1 -0.9 -0.1 0.3 2.3 -3.3 -0.5 -0.8 -4.0 7.2 7.0 13.99%
2009 -4.5 -0.2 1.1 0.3 3.4 -1.8 2.8 1.6 2.1 -0.5 6.6 -3.3 7.26%
2010 -2.2 0.9 3.2 2.7 -0.5 1.8 0.7 3.4 2.0 1.4 -1.9 3.2 15.61%
2011 0.6 3.1 0.4 4.0 -1.0 -2.9 2.2 7.5 -0.2 0.2 0.1 1.2 15.71%
2012 1.1 0.5 -0.1 0.9 1.0 1.2 2.4 0.1 -0.6 -0.8 0.2 1.3 7.56%
2013 -0.7 -0.4 1.7 2.5 -3.7 -2.8 3.7 -1.5 2.2 3.2 1.2 1.4 6.66%
2014 -1.7 2.5 -0.7 1.5 2.3 0.1 -0.8 3.5 -3.9 1.9 2.3 0.9 8.04%
2015 7.3 -2.8 -0.6 -0.4 -2.2 -3.8 1.9 -4.7 -0.2 1.2 -0.9 0.3 -5.18%
2016 0.4 3.4 0.9 0.1 -0.9 4.9 0.9 -1.7 -0.0 -1.9 -3.2 1.8 4.49%
2017 0.4 2.2 -0.5 0.4 1.4 -0.3 1.0 0.9 -0.4 0.8 0.8 0.9 7.79%
2018 3.3 -4.4 -0.9 0.8 1.0 -1.3 -0.4 1.4 0.4 -5.6 0.9 -0.2 -5.07%
2019 2.1 -0.2 2.3 -0.6 2.0 1.9 -0.2 5.5 -1.6 0.6 -0.9 1.3 12.82%
2020 2.0 -2.1 2.4 1.0 0.2 0.1 5.2 -0.2 -3.9 -2.4 3.6 4.1 10.17%
2021 -0.2 2.9 0.6 5.4 1.6 1.4 2.4 0.4 -2.8 4.2 -2.7 1.7 15.65%
2022 -3.2 3.5 5.1 -1.1 0.5 -4.0 -0.4 -3.0 -5.6 1.8 4.4 -0.9 -3.53%
2023 4.3 -4.2 2.7 1.2 -2.9 2.6 1.9 -1.9 -3.0 -0.8 2.9 2.5 4.95%
2024 -0.3 1.9 4.5 -1.1 2.0 0.8 1.3 9.26%

Notes

  1. The Balanced strategy was made available to subscribers on 3/31/2013. Performance results before this date represent a hypothetical strategy backtest. Strategy performance is tracked and verified by TimerTrac.com. (Note that Allocations made within the past 3 months are only shown to current subscribers).
  2. The benchmark portfolio is a typical allocation of 60% U.S. stocks and 40% bonds, rebalanced annually.
  3. Standard deviation, also known as historical volatility, is used by investors as a gauge of the amount of expected portfolio volatility. Volatile funds or portfolios have a high standard deviation. When comparing investments, a low standard deviation is preferable.
  4. The Sharpe Ratio measures risk-adjusted performance. It's calculated by subtracting the risk-free interest rate from the rate of return for a specific portfolio, and dividing the result by the standard deviation of the portfolio returns. We use U.S. Treasury Bill returns as our risk-free investment. When comparing portfolios, a high Sharpe Ratio is preferable.
  5. Drawdown: the peak-to-trough decline in investment or portfolio value, measured as a percentage between the peak and the trough. A good investment strategy aims to minimize drawdowns.