Revisiting 2008 to 2011 And Portfolio Performance

https://preview.redd.it/24xhufvf7ieg1.jpg?width=791&format=pjpg&auto=webp&s=551e833747834c42b4b0f612f540b2e1d3b1c8cc [User Friendly View of the Above](https://docs.google.com/spreadsheets/d/1UB-DCjR8VpKpBtLmoizq8XlxOG55HPE5PSlacoIHbvs/edit?usp=sharing) A common discussion point in Bogleheads is asset allocation between stocks and bonds, often in regards to stock market downturns. A recurring question in many threads is "How would you feel if stocks dropped 50%?" As some one who turned 51 in 2008 and was hoping to retire in 2012 at 55 I can tell you it's not a great feeling. But, IMO, the cure for dealing with market drops is worse than the disease. Markets drop and then rebound, but the cost of trying to manage drops tend to be permanent. With that in mind, I decided to go back and revisit the period from 2008 to 2011, and show what exactly MIGHT have happened for investors with different asset allocations using two common Boglehead ETFs, VTI (US total stock market) and BND (total bond market). I chose five different asset allocations, a 100% VTI investor, and investors with 10, 20, 30, and 40% allocations to BND. These types of portfolios are fairly standard in discussions in Reddit boards, including this one. The graphic attempts to summarize what I found, in hopefully an understandable format. First, what were the prices for the two ETFs on a monthly basis from 1/1/2008 to 12/31/2011, plus the low on March 9, 2009? Second, how would portfolios using the five different asset allocations fare over those 48 months? And third, once past 12/31/2011, how did those asset allocations perform annually until 12/31/2025? 1. The ETF prices were obtained from Yahoo Finance. Their web page includes an adjusted price for each historic date, which adjusts the price at the time for subsequent splits or dividends. Using the adjusted price effectively allows for reinvestment of dividends to determine the full return over time (price increase plus dividends). For the purposes