Comparing 10-Y Bonds, Gold & SP-500 Index

Joshua Maggid 2011 joshua.maggid@gmail.com

Sources: See page 2

Market Value

Year Gold S&P500 10Y-Bonds 10Y-Bonds

1962 0.00 -9.20 3.58 3.95
1963 0.00 23.04 2.60 4.00
1964 0.00 16.59 3.53 4.19
1965 0.00 12.45 -0.35 4.28
1966 0.00 -10.36 3.94 4.93 Year
1967 0.00 24.45 1.13 5.07
1968 11.26 11.03 -1.17 5.64
1969 4.67 -8.63 2.30 6.67 40 Years period

1970 -11.51 3.60 15.39 7.35 1970 Gold

1971 14.14 14.54 5.82 6.16 1971 14.14
1972 43.31 19.15 2.01 6.21 1972 43.31
1973 65.83 -15.03 2.33 6.85 1973 65.83
1974 62.47 -26.95 4.87 7.56 1974 62.47
1975 1.23 38.46 10.40 7.99 1975 1.23
1976 -22.50 24.20 8.83 7.61 1976 -22.50
1977 18.50 -7.78 1.34 7.42 1977 18.50
1978 30.86 6.41 2.40 8.41 1978 30.86
1979 57.62 18.69 -1.46 9.43 1979 57.62
1980 101.62 32.76 -0.92 11.43 1980 101.62
1981 -25.28 -5.33 18.59 13.92 1981 -25.28
1982 -18.29 21.22 23.54 13.01 1982 -18.29
1983 12.88 23.13 3.98 11.10 1983 12.88
1984 -14.90 5.96 22.80 12.46 1984 -14.90
1985 -12.02 32.24 29.30 10.62 1985 -12.02
1986 15.93 19.06 3.24 7.67 1986 15.93
1987 21.36 5.69 5.62 8.39 1987 21.36
1988 -2.13 16.64 11.05 8.85 1988 -2.13
1989 -12.83 32.00 8.12 8.49 1989 -12.83
1990 0.68 -3.42 12.89 8.55 1990 0.68
1991 -5.54 30.95 13.40 7.86 1991 -5.54
1992 -5.04 7.60 14.81 7.01 1992 -5.04
1993 4.69 10.17 -2.05 5.87 1993 4.69
1994 6.70 1.19 10.54 7.09 1994 6.70
1995 -0.02 38.02 7.44 6.57 1995 -0.02
1996 0.98 23.06 7.04 6.44 1996 0.98
1997 -14.66 33.67 14.01 6.35 1997 -14.66
1998 -11.14 28.73 2.57 5.26 1998 -11.14
1999 -5.29 21.11 3.07 5.65 1999 -5.29
 2000 0.20 -9.11 13.20 6.03 2000 0.20
2001 -2.30 -11.98 7.99 5.02 2001 -2.30
2002 13.57 -22.27 9.07 4.61 2002 13.57
2003 17.20 28.72 2.10 4.01 2003 17.20
2004 12.75 10.82 4.12 4.27 2004 12.75
2005 8.63 4.79 0.63 4.29 2005 8.63
2006 35.88 15.74 6.03 4.80 2006 35.88
2007 15.14 5.46 11.96 4.63 2007 15.14
2008 25.35 -37.22 6.74 3.66 2008 25.35
2009 11.62 27.11 3.57 3.26 2009 11.62
2010 25.86 14.32 3.22 3.22 2010 25.86
AVG71-10 11.83 11.81 7.86 7.20 AVG-71-010 11.83
CAGR 9.21
STD 25.84956613172
-1.52117220609
25.85316827283
Calculate downsite Standard Deviation

Returns excluding positive returns Year Moving Downside SD

year Gold S&P500 10Y-Bonds Gold

1971 1971 7.53
1972 1972 7.53
1973 -15.03 1973 7.53
1974 -26.95 1974 7.53
1975 1975 7.53
1976 -22.50 1976 7.53
1977 -7.78 1977 7.06
1978 1978 7.06
1979 -1.46 1979 7.06
1980 -0.92 1980 7.06
1981 -25.28 -5.33 1981 7.06
1982 -18.29 1982 5.73
1983 1983 5.17
1984 -14.90 1984 5.17
1985 -12.02 1985 4.88
1986 1986 4.85
1987 1987 4.85
1988 -2.13 1988 4.85
1989 -12.83 1989 4.87
1990 -3.42 1990 4.66
1991 -5.54 1991 4.66
1992 -5.04 1992 5.02
1993 -2.05 1993 5.46
1994 1994 5.46
1995 -0.02 1995 5.46
1996 1996 4.83
1997 -14.66 1997 4.83
1998 -11.14 1998 3.67
1999 -5.29 1999 1.49
2000 -9.11 2000 0.00
2001 -2.30 -11.98 2001 0.00
2002 -22.27 2002 0.00
2003 2003 0.00
2004 2004 0.00
2005 2005 0.00
2006 2006 0.00
 2007 2007 0.00
2008 -37.22 2008 0.00
2009 2009 0.00
2010 2010 0.00
SD 7.53 10.60 0.46

Moving Downside Risk

(Downside Standard
Deviation)
(excluding positive returns)
15

Downside SD
10

2010
2007
2004
2001
1998
1995
1992
1989
1986
1983
1980
1977
1974
1971
Over the years 2010 - XXXX
Gold S&P500
10Y-Bonds

Mixing Gold with SP-500 and Bonds

Mix Mixing SP-500 with Gold
% SP 0 10
%G 100 90
SD 25.85 22.95

Year Gold S&P500 10-Y Bonds SP0G100 SP10G90

1971 14.14 14.54 5.82 £1,971.00 14.14 14.18
1972 43.31 19.15 2.01 £1,972.00 43.31 40.89
1973 65.83 -15.03 2.33 £1,973.00 65.83 57.74
1974 62.47 -26.95 4.87 £1,974.00 62.47 53.53
1975 1.23 38.46 10.40 £1,975.00 1.23 4.95
1976 -22.50 24.20 8.83 £1,976.00 -22.50 -17.83
1977 18.50 -7.78 1.34 £1,977.00 18.50 15.87
1978 30.86 6.41 2.40 £1,978.00 30.86 28.42
1979 57.62 18.69 -1.46 £1,979.00 57.62 53.73
1980 101.62 32.76 -0.92 £1,980.00 101.62 94.74
1981 -25.28 -5.33 18.59 £1,981.00 -25.28 -23.28
1982 -18.29 21.22 23.54 £1,982.00 -18.29 -14.34
1983 12.88 23.13 3.98 £1,983.00 12.88 13.90
1984 -14.90 5.96 22.80 £1,984.00 -14.90 -12.81
 1985 -12.02 32.24 29.30 £1,985.00 -12.02 -7.59
1986 15.93 19.06 3.24 £1,986.00 15.93 16.25
1987 21.36 5.69 5.62 £1,987.00 21.36 19.80
1988 -2.13 16.64 11.05 £1,988.00 -2.13 -0.25
1989 -12.83 32.00 8.12 £1,989.00 -12.83 -8.35
1990 0.68 -3.42 12.89 £1,990.00 0.68 0.27
1991 -5.54 30.95 13.40 £1,991.00 -5.54 -1.89
1992 -5.04 7.60 14.81 £1,992.00 -5.04 -3.77
1993 4.69 10.17 -2.05 £1,993.00 4.69 5.24
1994 6.70 1.19 10.54 £1,994.00 6.70 6.15
1995 -0.02 38.02 7.44 £1,995.00 -0.02 3.79
1996 0.98 23.06 7.04 £1,996.00 0.98 3.19
1997 -14.66 33.67 14.01 £1,997.00 -14.66 -9.82
1998 -11.14 28.73 2.57 £1,998.00 -11.14 -7.15
1999 -5.29 21.11 3.07 £1,999.00 -5.29 -2.65
2000 0.20 -9.11 13.20 £2,000.00 0.20 -0.73
2001 -2.30 -11.98 7.99 £2,001.00 -2.30 -3.27
2002 13.57 -22.27 9.07 £2,002.00 13.57 9.98
2003 17.20 28.72 2.10 £2,003.00 17.20 18.35
2004 12.75 10.82 4.12 £2,004.00 12.75 12.55
2005 8.63 4.79 0.63 £2,005.00 8.63 8.24
2006 35.88 15.74 6.03 £2,006.00 35.88 33.87
2007 15.14 5.46 11.96 £2,007.00 15.14 14.17
2008 25.35 -37.22 6.74 £2,008.00 25.35 19.09
2009 11.62 27.11 3.57 £2,009.00 11.62 13.16
2010 25.86 14.32 3.22 £2,010.00 25.86 24.71

Mix
%B 0 10
Mixing SP-500 with Bonds % SP 100 90
SD 18.12 16.34
CAGR 10.16 10.09
3 Sharpe Ratio 0.40 0.43
Year S&P50010-Y Bonds B0SP100 B10SP90
1971 14.54 5.82 £1,971.00 14.54 13.67
1972 19.15 2.01 £1,972.00 19.15 17.44
1973 -15.03 2.33 £1,973.00 -15.03 -13.29
1974 -26.95 4.87 £1,974.00 -26.95 -23.77
1975 38.46 10.40 £1,975.00 38.46 35.65
1976 24.20 8.83 £1,976.00 24.20 22.66
1977 -7.78 1.34 £1,977.00 -7.78 -6.87
1978 6.41 2.40 £1,978.00 6.41 6.01
1979 18.69 -1.46 £1,979.00 18.69 16.67
1980 32.76 -0.92 £1,980.00 32.76 29.39
1981 -5.33 18.59 £1,981.00 -5.33 -2.94
1982 21.22 23.54 £1,982.00 21.22 21.45
 1983 23.13 3.98 £1,983.00 23.13 21.21
1984 5.96 22.80 £1,984.00 5.96 7.64
1985 32.24 29.30 £1,985.00 32.24 31.95
1986 19.06 3.24 £1,986.00 19.06 17.48
1987 5.69 5.62 £1,987.00 5.69 5.68
1988 16.64 11.05 £1,988.00 16.64 16.08
1989 32.00 8.12 £1,989.00 32.00 29.61
1990 -3.42 12.89 £1,990.00 -3.42 -1.79
1991 30.95 13.40 £1,991.00 30.95 29.19
1992 7.60 14.81 £1,992.00 7.60 8.32
1993 10.17 -2.05 £1,993.00 10.17 8.95
1994 1.19 10.54 £1,994.00 1.19 2.13
1995 38.02 7.44 £1,995.00 38.02 34.96
1996 23.06 7.04 £1,996.00 23.06 21.46
1997 33.67 14.01 £1,997.00 33.67 31.70
1998 28.73 2.57 £1,998.00 28.73 26.11
1999 21.11 3.07 £1,999.00 21.11 19.31
2000 -9.11 13.20 £2,000.00 -9.11 -6.88
2001 -11.98 7.99 £2,001.00 -11.98 -9.98
2002 -22.27 9.07 £2,002.00 -22.27 -19.14
2003 28.72 2.10 £2,003.00 28.72 26.06
2004 10.82 4.12 £2,004.00 10.82 10.15
2005 4.79 0.63 £2,005.00 4.79 4.37
2006 15.74 6.03 £2,006.00 15.74 14.77
2007 5.46 11.96 £2,007.00 5.46 6.11
2008 -37.22 6.74 £2,008.00 -37.22 -32.82
2009 27.11 3.57 £2,009.00 27.11 24.76
2010 14.32 3.22 £2,010.00 14.32 13.21

Mixing Gold, SP-500 , Bonds all together

Mix Mixing all three assets
%G 0 30
% SP 0 0
%B 100 70
SD 6.91 6.21
CAGR 7.64 8.88
3 Sharpe Ratio 0.67 0.95
4 Sharpe Ratio 0.53 0.79
Year Gold S&P500 10-Y Bonds G0SP0B100 G30SP0B70
1971 14.1 14.5 5.8 £1,971.00 5.82 8.32
1972 43.3 19.2 2.0 £1,972.00 2.01 14.40
1973 65.8 -15.0 2.3 £1,973.00 2.33 21.38
1974 62.5 -27.0 4.9 £1,974.00 4.87 22.15
1975 1.2 38.5 10.4 £1,975.00 10.40 7.65
1976 -22.5 24.2 8.8 £1,976.00 8.83 -0.57
1977 18.5 -7.8 1.3 £1,977.00 1.34 6.49
1978 30.9 6.4 2.4 £1,978.00 2.40 10.94
1979 57.6 18.7 -1.5 £1,979.00 -1.46 16.26
1980 101.6 32.8 -0.9 £1,980.00 -0.92 29.84
1981 -25.3 -5.3 18.6 £1,981.00 18.59 5.43
1982 -18.3 21.2 23.5 £1,982.00 23.54 11.00
1983 12.9 23.1 4.0 £1,983.00 3.98 6.65
1984 -14.9 6.0 22.8 £1,984.00 22.80 11.49
1985 -12.0 32.2 29.3 £1,985.00 29.30 16.91
1986 15.9 19.1 3.2 £1,986.00 3.24 7.05
1987 21.4 5.7 5.6 £1,987.00 5.62 10.34
1988 -2.1 16.6 11.1 £1,988.00 11.05 7.10
1989 -12.8 32.0 8.1 £1,989.00 8.12 1.84
1990 0.7 -3.4 12.9 £1,990.00 12.89 9.22
1991 -5.5 31.0 13.4 £1,991.00 13.40 7.72
1992 -5.0 7.6 14.8 £1,992.00 14.81 8.85
1993 4.7 10.2 -2.0 £1,993.00 -2.05 -0.03
1994 6.7 1.2 10.5 £1,994.00 10.54 9.39
1995 0.0 38.0 7.4 £1,995.00 7.44 5.20
1996 1.0 23.1 7.0 £1,996.00 7.04 5.22
1997 -14.7 33.7 14.0 £1,997.00 14.01 5.41
1998 -11.1 28.7 2.6 £1,998.00 2.57 -1.54
1999 -5.3 21.1 3.1 £1,999.00 3.07 0.56
2000 0.2 -9.1 13.2 £2,000.00 13.20 9.30
2001 -2.3 -12.0 8.0 £2,001.00 7.99 4.90
2002 13.6 -22.3 9.1 £2,002.00 9.07 10.42
2003 17.2 28.7 2.1 £2,003.00 2.10 6.63
2004 12.7 10.8 4.1 £2,004.00 4.12 6.71
2005 8.6 4.8 0.6 £2,005.00 0.63 3.03
2006 35.9 15.7 6.0 £2,006.00 6.03 14.98
2007 15.1 5.5 12.0 £2,007.00 11.96 12.91
2008 25.3 -37.2 6.7 £2,008.00 6.74 12.32
2009 11.6 27.1 3.6 £2,009.00 3.57 5.98
2010 25.9 14.3 3.2 £2,010.00 3.22 10.01
 CAGR-Help Moving average
S&P50 10Y-
S&P500 10Y-Bonds 1 1 1 Gold 0 Bonds
14.54 5.82 1.141391738287 1.1454 1.05823002084 11.83 11.81 7.86
19.15 2.01 1.635708344885 1.3647441 1.079537625683 11.77 11.74 7.91
-15.03 2.33 2.712503465484 1.15962306177 1.104716728849 10.94 11.55 8.06
-26.95 4.87 4.406986415304 0.847104646623 1.15854649107 9.45 12.27 8.22
38.46 10.40 4.461047962296 1.1729010937142 1.279067795288 7.98 13.36 8.31
24.20 8.83 3.457443859163 1.456743158393 1.391959304635 8.17 12.64 8.25
-7.78 1.34 4.097033545883 1.3434085406701 1.410606646895 9.08 12.30 8.23
6.41 2.40 5.36151926809 1.429521028127 1.44446558706 8.79 12.91 8.44
18.69 -1.46 8.451067369005 1.6966985082839 1.423355922053 8.10 13.11 8.63
32.76 -0.92 17.03936789576 2.2525369395977 1.410227074843 6.50 12.93 8.96
-5.33 18.59 12.73246465207 2.1324767207172 1.672361076718 3.33 12.27 9.29
21.22 23.54 10.40421402828 2.5849882808534 2.066114809584 4.32 12.88 8.97
23.13 3.98 11.74410867757 3.1828960702148 2.148316330464 5.13 12.58 8.44
5.96 22.80 9.99445522595 3.3725966759996 2.638141352609 4.84 12.19 8.61
32.24 29.30 8.79345716662 4.4599218443418 3.411219895637 5.60 12.43 8.06
19.06 3.24 10.19462156917 5.3099829478734 3.521889390066 6.30 11.63 7.21
5.69 5.62 12.37260881619 5.6121209776074 3.719653663143 5.90 11.32 7.38
16.64 11.05 12.1095092875 6.5459779082812 4.130815570129 5.23 11.57 7.46
32.00 8.12 10.55558635986 8.6406908389312 4.466386908723 5.56 11.34 7.29
-3.42 12.89 10.62711394511 8.3451792122398 5.041905854925 6.44 10.36 7.25
30.95 13.40 10.03881341835 10.928012178428 5.717299010365 6.73 11.04 6.97
7.60 14.81 9.533130024951 11.758541103989 6.563916068307 7.37 10.00 6.63
10.17 -2.05 9.980593290823 12.954384734264 6.429471254723 8.06 10.13 6.18
1.19 10.54 10.64929304131 13.108541912602 7.107187248547 8.26 10.13 6.66
38.02 7.44 10.64735237039 18.092409547773 7.635786563729 8.36 10.69 6.42
23.06 7.04 10.75187136124 22.26451918949 8.17357003978 8.92 8.86 6.35
33.67 14.01 9.176046576102 29.760982800591 9.318573196859 9.49 7.85 6.30
28.73 2.57 8.154144718603 38.3113131592 9.557730532083 11.34 5.86 5.71
21.11 3.07 7.722484058775 46.398831367108 9.851031308205 13.22 3.96 5.97
 -9.11 13.20 7.737732187413 42.171897829564 11.15161475026 14.90 2.40 6.24
-11.98 7.99 7.559467701691 37.119704469582 12.04212606005 16.37 3.55 5.54
-22.27 9.07 8.584973662323 28.853146284206 13.1342465566 18.44 5.27 5.27
28.72 2.10 10.06126529962 37.13976989703 13.41011562046 19.05 8.72 4.80
10.82 4.12 11.34382659819 41.158292999889 13.96304674998 19.32 5.86 5.18
4.79 0.63 12.32248960355 43.129775234584 14.05136395595 20.41 5.03 5.36
15.74 6.03 16.74384794117 49.918401856507 14.89844903334 22.77 5.08 6.30
5.46 11.96 19.27880383098 52.643946597873 16.67960757757 19.49 2.42 6.37
-37.22 6.74 24.16551150541 33.049869674144 17.80331647188 20.94 1.40 4.51
27.11 3.57 26.97242008061 42.009689342805 18.43858750467 18.74 20.72 3.39
14.32 3.22 33.94845900567 48.025476856695 19.03231002232 25.86 14.32 3.22
11.81 7.86 37.96354910681 53.698726437776 20.52733454122
10.16 7.64 9.21 10.16 7.64
18.11562 6.90521791
Moving Compound Ann
12.3862 Year

1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

Moving Compound Annual Growth Rate

Moving Average CAGR

2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975

Over the years 2010 - XXXX

Gold S&P 500 10Y Bonds

ing Downside SD Year Returns replacing positive returns by zero
10Y-
S&P500 10Y-Bonds Gold S&P500 Bonds
10.60 0.46 1971 0.00 0.00 0.00
10.60 0.46 1972 0.00 0.00 0.00
10.60 0.46 1973 0.00 -15.03 0.00
11.24 0.46 1974 0.00 -26.95 0.00
11.09 0.46 1975 0.00 0.00 0.00
11.09 0.46 1976 -22.50 0.00 0.00
11.09 0.46 1977 0.00 -7.78 0.00
11.68 0.46 1978 0.00 0.00 0.00
11.68 0.46 1979 0.00 0.00 13.11
11.68 0.56 1980 0.00 0.00 12.93
11.68 0.00 1981 -25.28 -5.33 0.00
11.90 0.00 1982 -18.29 0.00 0.00
11.90 0.00 1983 0.00 0.00 0.00
11.90 0.00 1984 -14.90 0.00 0.00
11.90 0.00 1985 -12.02 0.00 0.00
11.90 0.00 1986 0.00 0.00 0.00
11.90 0.00 1987 0.00 0.00 0.00
11.90 0.00 1988 -2.13 0.00 0.00
11.90 0.00 1989 -12.83 0.00 0.00
11.90 0.00 1990 0.00 -3.42 0.00
11.01 0.00 1991 -5.54 0.00 0.00
11.01 0.00 1992 -5.04 0.00 0.00
11.01 0.00 1993 0.00 0.00 10.13
11.01 0.00 1994 0.00 0.00 0.00
11.01 0.00 1995 -0.02 0.00 0.00
11.01 0.00 1996 0.00 0.00 0.00
11.01 0.00 1997 -14.66 0.00 0.00
11.01 0.00 1998 -11.14 0.00 0.00
11.01 0.00 1999 -5.29 0.00 0.00
11.01 0.00 2000 0.00 -9.11 0.00
10.36 0.00 2001 -2.30 -11.98 0.00
7.48 0.00 2002 0.00 -22.27 0.00
0.00 0.00 2003 0.00 0.00 0.00
0.00 0.00 2004 0.00 0.00 0.00
0.00 0.00 2005 0.00 0.00 0.00
0.00 0.00 2006 0.00 0.00 0.00
 0.00 0.00 2007 0.00 0.00 0.00
0.00 0.00 2008 0.00 -37.22 0.00
0.00 0.00 2009 0.00 0.00 0.00
0.00 0.00 2010 0.00 0.00 0.00
6.83 8.18 3.20

side Risk Moving Downside Risk

andard (Downside Standard
Deviation)
sitive returns) (replacing positive returns
15 by zero)

10 12

Downside SD
5 8

4
0
1989
1986
1983
1980
1977
1974
1971

20 7
03
99

19 5
91
87
83
79
75
71
0

19
20

19
19

19
19

19
19
ars 2010 - XXXX Over the years 2010 - XXXX
S&P500
s Gold S&P500 10Y-Bonds

20 30 40 50 60 70 80 90
80 70 60 50 40 30 20 10
20.22 17.75 15.66 14.11 13.31 13.38 14.31 15.95

SP20G80 SP30G70 SP40G60 SP50G50 SP60G40 SP70G30 SP80G2SP90G10

14.22 14.26 14.30 14.34 14.38 14.42 14.46 14.50
38.48 36.06 33.64 31.23 28.81 26.40 23.98 21.57
49.66 41.57 33.49 25.40 17.31 9.23 1.14 -6.94
44.59 35.64 26.70 17.76 8.82 -0.12 -9.07 -18.01
8.67 12.40 16.12 19.84 23.57 27.29 31.01 34.74
-13.16 -8.49 -3.82 0.85 5.52 10.19 14.86 19.53
13.24 10.62 7.99 5.36 2.73 0.10 -2.52 -5.15
25.97 23.53 21.08 18.64 16.19 13.75 11.30 8.86
49.84 45.94 42.05 38.16 34.26 30.37 26.48 22.58
87.85 80.96 74.08 67.19 60.31 53.42 46.53 39.65
-21.29 -19.29 -17.30 -15.30 -13.31 -11.31 -9.32 -7.32
-10.38 -6.43 -2.48 1.47 5.42 9.37 13.32 17.27
14.93 15.95 16.98 18.00 19.03 20.05 21.08 22.10
-10.73 -8.64 -6.55 -4.47 -2.38 -0.30 1.79 3.87
 -3.17 1.26 5.69 10.11 14.54 18.96 23.39 27.81
16.56 16.87 17.18 17.50 17.81 18.12 18.43 18.75
18.23 16.66 15.09 13.53 11.96 10.39 8.82 7.26
1.63 3.50 5.38 7.26 9.13 11.01 12.89 14.76
-3.87 0.62 5.10 9.58 14.07 18.55 23.03 27.52
-0.14 -0.55 -0.96 -1.37 -1.78 -2.19 -2.60 -3.01
1.76 5.41 9.06 12.71 16.36 20.00 23.65 27.30
-2.51 -1.25 0.02 1.28 2.55 3.81 5.07 6.34
5.79 6.34 6.88 7.43 7.98 8.53 9.07 9.62
5.60 5.05 4.50 3.95 3.39 2.84 2.29 1.74
7.59 11.39 15.20 19.00 22.80 26.61 30.41 34.22
5.40 7.61 9.81 12.02 14.23 16.44 18.64 20.85
-4.99 -0.16 4.67 9.51 14.34 19.17 24.00 28.84
-3.16 0.82 4.81 8.80 12.78 16.77 20.76 24.74
-0.01 2.63 5.27 7.91 10.55 13.19 15.83 18.47
-1.66 -2.59 -3.53 -4.46 -5.39 -6.32 -7.25 -8.18
-4.24 -5.21 -6.17 -7.14 -8.11 -9.08 -10.04 -11.01
6.40 2.82 -0.77 -4.35 -7.94 -11.52 -15.10 -18.69
19.50 20.65 21.81 22.96 24.11 25.26 26.42 27.57
12.36 12.17 11.98 11.78 11.59 11.40 11.21 11.01
7.86 7.48 7.09 6.71 6.32 5.94 5.56 5.17
31.85 29.84 27.82 25.81 23.80 21.78 19.77 17.75
13.20 12.24 11.27 10.30 9.33 8.36 7.40 6.43
12.83 6.58 0.32 -5.94 -12.19 -18.45 -24.71 -30.96
14.71 16.26 17.81 19.36 20.91 22.46 24.01 25.56
23.55 22.40 21.25 20.09 18.94 17.78 16.63 15.47

20 30 40 50 60 70 80 90
80 70 60 50 40 30 20 10
14.61 12.93 11.32 9.82 8.48 7.41 6.72 6.54
9.97 9.82 9.62 9.38 9.10 8.79 8.44 8.06
0.48 0.53 0.58 0.65 0.72 0.78 0.81 0.77
B20SP80 B30SP70 B40SP60 B50SP50 B60SP40 B70SP30 B80SP2B90SP10
12.80 11.92 11.05 10.18 9.31 8.44 7.57 6.69
15.72 14.01 12.30 10.58 8.87 7.15 5.44 3.73
-11.56 -9.82 -8.09 -6.35 -4.61 -2.88 -1.14 0.60
-20.59 -17.40 -14.22 -11.04 -7.86 -4.67 -1.49 1.69
32.85 30.04 27.24 24.43 21.63 18.82 16.01 13.21
21.13 19.59 18.05 16.51 14.98 13.44 11.90 10.36
-5.96 -5.04 -4.13 -3.22 -2.31 -1.40 -0.48 0.43
5.61 5.21 4.81 4.41 4.00 3.60 3.20 2.80
14.66 12.64 10.63 8.61 6.60 4.58 2.57 0.55
26.02 22.66 19.29 15.92 12.55 9.18 5.81 2.45
-0.55 1.85 4.24 6.63 9.02 11.41 13.80 16.20
21.68 21.92 22.15 22.38 22.61 22.85 23.08 23.31
 19.30 17.38 15.47 13.55 11.64 9.72 7.81 5.89
9.33 11.01 12.70 14.38 16.06 17.75 19.43 21.12
31.65 31.36 31.07 30.77 30.48 30.18 29.89 29.60
15.90 14.32 12.73 11.15 9.57 7.99 6.41 4.83
5.68 5.67 5.66 5.65 5.65 5.64 5.63 5.62
15.52 14.96 14.41 13.85 13.29 12.73 12.17 11.61
27.22 24.84 22.45 20.06 17.67 15.29 12.90 10.51
-0.16 1.47 3.10 4.73 6.36 7.99 9.62 11.26
27.44 25.68 23.93 22.17 20.42 18.66 16.91 15.15
9.04 9.76 10.48 11.20 11.92 12.65 13.37 14.09
7.73 6.50 5.28 4.06 2.84 1.62 0.40 -0.83
3.06 4.00 4.93 5.87 6.80 7.74 8.67 9.61
31.90 28.85 25.79 22.73 19.67 16.61 13.55 10.50
19.86 18.25 16.65 15.05 13.45 11.85 10.25 8.64
29.74 27.77 25.81 23.84 21.87 19.91 17.94 15.97
23.50 20.88 18.26 15.65 13.03 10.42 7.80 5.18
17.50 15.70 13.89 12.09 10.29 8.48 6.68 4.87
-4.65 -2.42 -0.18 2.05 4.28 6.51 8.74 10.97
-7.99 -5.99 -3.99 -2.00 0.00 2.00 3.99 5.99
-16.00 -12.87 -9.73 -6.60 -3.47 -0.33 2.80 5.94
23.40 20.73 18.07 15.41 12.75 10.09 7.42 4.76
9.48 8.81 8.14 7.47 6.80 6.13 5.46 4.79
3.96 3.54 3.13 2.71 2.30 1.88 1.46 1.05
13.80 12.83 11.86 10.88 9.91 8.94 7.97 7.00
6.76 7.41 8.06 8.71 9.36 10.01 10.66 11.31
-28.43 -24.03 -19.64 -15.24 -10.85 -6.45 -2.05 2.34
22.40 20.05 17.69 15.34 12.98 10.63 8.28 5.92
12.10 10.99 9.88 8.77 7.66 6.55 5.44 4.33

20 15 10 0 20 30 0 30
10 15 20 50 30 20 60 30
70 70 70 50 50 50 40 40
4.48 4.45 5.05 9.82 6.02 6.49 11.32 7.40
8.96 8.96 8.93 9.38 9.67 9.66 9.62 10.00
1.33 1.34 1.17 0.65 1.11 1.03 0.58 0.95
1.11 1.11 0.98 0.55 0.94 0.87 0.50 0.81
G20SP10BG15SP15B70G10SP20B70 G0SP50B50 G20SP30B50 G30SP20BG0SP60G30SP30B
8.36 8.38 8.40 10.18 10.10 10.06 11.05 10.93
11.99 10.78 9.57 10.58 15.41 17.83 12.30 19.54
13.30 9.25 5.21 -6.35 9.82 17.91 -8.09 16.17
13.21 8.74 4.27 -11.04 6.85 15.79 -14.22 12.60
11.37 13.23 15.10 24.43 16.98 13.26 27.24 16.07
4.10 6.43 8.77 16.51 7.17 2.50 18.05 4.04
3.86 2.55 1.23 -3.22 2.04 4.66 -4.13 3.75
8.49 7.27 6.05 4.41 9.30 11.74 4.81 12.14
12.37 10.42 8.48 8.61 16.40 20.29 10.63 22.31
22.96 19.51 16.07 15.92 29.69 36.58 19.29 39.95
7.42 8.42 9.42 6.63 2.64 0.65 4.24 -1.75
14.95 16.92 18.90 22.38 14.48 10.53 22.15 10.30
7.67 8.19 8.70 13.55 11.50 10.48 15.47 12.39
13.58 14.62 15.66 14.38 10.21 8.12 12.70 6.44
21.33 23.55 25.76 30.77 21.92 17.49 31.07 17.79
7.36 7.52 7.68 11.15 10.53 10.21 12.73 11.80
8.77 7.99 7.21 5.65 8.79 10.35 5.66 10.36
8.98 9.91 10.85 13.85 10.09 8.22 14.41 8.78
6.32 8.56 10.80 20.06 11.10 6.61 22.45 9.00
8.81 8.61 8.40 4.73 5.55 5.96 3.10 4.33
11.36 13.19 15.01 22.17 14.88 11.23 23.93 12.98
10.12 10.75 11.38 11.20 8.68 7.41 10.48 6.69
0.52 0.80 1.07 4.06 2.97 2.42 5.28 3.64
8.84 8.56 8.29 5.87 6.97 7.52 4.93 6.58
9.00 10.91 12.81 22.73 15.12 11.32 25.79 14.38
7.43 8.54 9.64 15.05 10.64 8.43 16.65 10.03
10.24 12.66 15.07 23.84 14.17 9.34 25.81 11.31
2.44 4.44 6.43 15.65 7.67 3.69 18.26 6.30
3.20 4.52 5.84 12.09 6.81 4.17 13.89 5.97
8.37 7.90 7.44 2.05 3.91 4.84 -0.18 2.61
3.93 3.45 2.96 -2.00 -0.06 0.91 -3.99 -1.09
6.83 5.04 3.25 -6.60 0.57 4.15 -9.73 1.02
7.78 8.36 8.93 15.41 13.11 11.95 18.07 14.62
6.52 6.42 6.33 7.47 7.86 8.05 8.14 8.72
2.65 2.46 2.26 2.71 3.48 3.86 3.13 4.28
12.97 11.96 10.96 10.88 14.91 16.93 11.86 17.90
11.94 11.46 10.97 8.71 10.64 11.61 8.06 10.96
6.06 2.94 -0.19 -15.24 -2.73 3.53 -19.64 -0.87
7.53 8.31 9.08 15.34 12.24 10.69 17.69 13.04
8.86 8.28 7.70 8.77 11.08 12.23 9.88 13.34
Moving CAGR STD
10Y- 10Y-
Gold S&P500 Bonds Gold S&P500 Bonds
9.212036 10.16326 7.64337 25.84957 18.11562 6.905218
9.088535 10.05327 7.690456 26.17619 18.34107 6.985416
8.308091 9.823499 7.84404 26.00685 18.54092 7.010133
7.068275 10.58772 7.997054 24.71835 18.26058 7.039799
5.835156 11.86888 8.085157 23.40358 17.28595 7.114496
5.969864 11.18934 8.019658 23.7073 16.99473 7.206492
6.949407 10.82804 7.996031 23.45387 17.12508 7.311016
6.617576 11.44705 8.204424 23.74829 17.01671 7.320308
5.937051 11.60825 8.391009 23.78876 17.24115 7.354252
4.587774 11.38698 8.724726 22.41637 17.48741 7.241402
2.324324 10.73715 9.061989 14.40819 17.39134 7.129106
3.439513 11.33737 8.74752 13.62195 17.37353 7.03492
4.314155 10.99972 8.253167 13.16367 17.60807 6.587487
4.009755 10.57417 8.414817 13.31887 17.81153 6.651025
4.815478 10.75559 7.896521 12.98671 18.10812 6.155867
5.551988 9.972925 7.118201 12.74723 18.01913 4.543532
5.140178 9.60973 7.282732 12.85445 18.32551 4.562856
4.486234 9.783412 7.355824 12.71122 18.68114 4.645811
4.797206 9.48151 7.190693 12.89758 19.06898 4.68506
5.720434 8.510692 7.146469 12.54533 18.96435 4.791725
5.979102 9.144486 6.8673 12.78714 19.17463 4.737456
6.62262 8.103175 6.534312 12.79778 19.10666 4.619395
7.310838 8.131198 6.092557 12.80034 19.62165 4.313496
7.466805 8.01245 6.591969 13.14456 20.19051 3.934962
7.514912 8.453814 6.349906 13.54313 20.68408 3.931108
8.036846 6.724719 6.27779 13.80771 20.08037 4.050983
8.559256 5.644533 6.223347 14.12269 20.41074 4.188831
10.58722 3.749615 5.646979 12.904 19.83467 3.738914
12.6212 1.901064 5.907828 11.60917 19.46774 3.775065
 14.40902 0.31374 6.169774 10.63248 19.60278 3.835289
15.93662 1.308259 5.490992 10.02911 20.20217 3.293253
18.16286 2.903391 5.217407 8.289608 20.58406 3.363547
18.75042 6.576097 4.745601 8.600166 19.23473 3.270843
18.97412 3.740299 5.129043 9.163329 18.90783 3.322758
20.04482 2.605125 5.297619 9.464054 20.30533 3.558568
22.46848 2.173648 6.256279 8.610988 22.24306 3.136755
19.32768 -0.961797 6.313303 6.24239 24.14424 3.503669
20.75728 -3.01429 4.496535 6.598424 27.80548 1.582253
18.52557 20.54549 3.39399 7.124126 6.395 0.174137
25.8636 14.32 3.22 0 0 0

Moving Compound Annual growth rate Moving Risk (Standard deviation)

Year
Gold S&P 500 10Y Bonds Gold S&P 500 10Y Bonds
9.21 10.16 7.64 1971 25.84957 18.11562 6.905218
9.09 10.05 7.69 1972 26.17619 18.34107 6.985416
8.31 9.82 7.84 1973 26.00685 18.54092 7.010133
7.07 10.59 8.00 1974 24.71835 18.26058 7.039799
5.84 11.87 8.09 1975 23.40358 17.28595 7.114496
5.97 11.19 8.02 1976 23.7073 16.99473 7.206492
6.95 10.83 8.00 1977 23.45387 17.12508 7.311016
6.62 11.45 8.20 1978 23.74829 17.01671 7.320308
5.94 11.61 8.39 1979 23.78876 17.24115 7.354252
4.59 11.39 8.72 1980 22.41637 17.48741 7.241402
2.32 10.74 9.06 1981 14.40819 17.39134 7.129106
3.44 11.34 8.75 1982 13.62195 17.37353 7.03492
4.31 11.00 8.25 1983 13.16367 17.60807 6.587487
4.01 10.57 8.41 1984 13.31887 17.81153 6.651025
4.82 10.76 7.90 1985 12.98671 18.10812 6.155867
5.55 9.97 7.12 1986 12.74723 18.01913 4.543532
5.14 9.61 7.28 1987 12.85445 18.32551 4.562856
4.49 9.78 7.36 1988 12.71122 18.68114 4.645811
4.80 9.48 7.19 1989 12.89758 19.06898 4.68506
5.72 8.51 7.15 1990 12.54533 18.96435 4.791725
5.98 9.14 6.87 1991 12.78714 19.17463 4.737456
6.62 8.10 6.53 1992 12.79778 19.10666 4.619395
7.31 8.13 6.09 1993 12.80034 19.62165 4.313496
7.47 8.01 6.59 1994 13.14456 20.19051 3.934962
7.51 8.45 6.35 1995 13.54313 20.68408 3.931108
8.04 6.72 6.28 1996 13.80771 20.08037 4.050983
8.56 5.64 6.22 1997 14.12269 20.41074 4.188831
10.59 3.75 5.65 1998 12.904 19.83467 3.738914
12.62 1.90 5.91 1999 11.60917 19.46774 3.775065
 14.41 0.31 6.17 2000 10.63248 19.60278 3.835289
15.94 1.31 5.49 2001 10.02911 20.20217 3.293253
18.16 2.90 5.22 2002 8.289608 20.58406 3.363547
18.75 6.58 4.75 2003 8.600166 19.23473 3.270843
18.97 3.74 5.13 2004 9.163329 18.90783 3.322758
20.04 2.61 5.30 2005 9.464054 20.30533 3.558568
22.47 2.17 6.26 2006 8.610988 22.24306 3.136755
19.33 -0.96 6.31 2007 6.24239 24.14424 3.503669
20.76 -3.01 4.50 2008 6.598424 27.80548 1.582253
18.53 20.55 3.39 2009 7.124126 6.395 0.174137
25.86 14.32 3.22 2010 0 0 0

Growth Rate Moving Risk

30
(Moving Standard Deviation)
25
Moving Average Risk

20

15

10

5
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
0
Over the years 2010 - XXXX
-5
1985
1983
1981
1979
1977
1975
1973
1971

Gold S&P 500 10Y Bonds

10Y Bonds
Year Moving Downside SD (incl. zeros)
10Y-
Gold S&P500 Bonds
1971 6.83 8.18 3.20
1972 6.89 8.27 3.23
1973 6.95 8.35 3.27
1974 7.01 8.25 3.31
1975 7.08 7.35 3.36
1976 7.14 7.44 3.40
1977 6.52 7.54 3.44
1978 6.58 7.60 3.49
1979 6.65 7.70 3.54
1980 6.71 7.81 2.85
1981 6.78 7.92 1.82
1982 5.65 8.04 1.85
1983 5.00 8.17 1.88
1984 5.06 8.30 1.91
1985 4.59 8.43 1.95
1986 4.28 8.57 1.98
1987 4.34 8.72 2.02
1988 4.41 8.88 2.07
1989 4.50 9.04 2.11
1990 4.00 9.22 2.16
1991 4.07 9.44 2.21
1992 4.10 9.64 2.26
1993 4.15 9.85 2.32
1994 4.25 10.08 0.00
1995 4.35 10.31 0.00
1996 4.46 10.57 0.00
1997 4.57 10.84 0.00
1998 3.17 11.12 0.00
1999 1.54 11.43 0.00
2000 0.00 11.75 0.00
2001 0.00 12.30 0.00
2002 0.00 12.86 0.00
2003 0.00 0.00 0.00
2004 0.00 0.00 0.00
2005 0.00 0.00 0.00
2006 0.00 0.00 0.00
 2007 0.00 0.00 0.00
2008 0.00 0.00 0.00
2009 0.00 0.00 0.00
2010 0.00 0.00 0.00

e Risk
ard

ve returns

12

0
83

19 9
75
71
7
19

19

010 - XXXX

0 10Y-Bonds

Mix Mixing Bonds with Gold

100 %B 0 10 20 30 40 50 60
0 %G 100 90 80 70 60 50 40
18.12 SD 25.85 22.86 19.88 16.93 14.03 11.20 8.53

SP100G0 B0G100 B10G90 B20G80 B30G70 B40G60 B50G50 B60G40

14.54 1971 14.14 13.31 12.48 11.64 10.81 9.98 9.15
19.15 1972 43.31 39.18 35.05 30.92 26.79 22.66 18.53
-15.03 1973 65.83 59.48 53.13 46.78 40.43 34.08 27.73
-26.95 1974 62.47 56.71 50.95 45.19 39.43 33.67 27.91
38.46 1975 1.23 2.14 3.06 3.98 4.90 5.81 6.73
24.20 1976 -22.50 -19.36 -16.23 -13.10 -9.97 -6.84 -3.70
-7.78 1977 18.50 16.78 15.07 13.35 11.64 9.92 8.20
6.41 1978 30.86 28.02 25.17 22.32 19.48 16.63 13.79
18.69 1979 57.62 51.72 45.81 39.90 33.99 28.08 22.17
32.76 1980 101.62 91.37 81.11 70.86 60.61 50.35 40.10
-5.33 1981 -25.28 -20.89 -16.50 -12.12 -7.73 -3.34 1.04
21.22 1982 -18.29 -14.10 -9.92 -5.74 -1.55 2.63 6.81
23.13 1983 12.88 11.99 11.10 10.21 9.32 8.43 7.54
5.96 1984 -14.90 -11.13 -7.36 -3.59 0.18 3.95 7.72
 32.24 1985 -12.02 -7.88 -3.75 0.38 4.51 8.64 12.78
19.06 1986 15.93 14.67 13.40 12.13 10.86 9.59 8.32
5.69 1987 21.36 19.79 18.21 16.64 15.06 13.49 11.91
16.64 1988 -2.13 -0.81 0.51 1.83 3.15 4.46 5.78
32.00 1989 -12.83 -10.74 -8.64 -6.55 -4.45 -2.35 -0.26
-3.42 1990 0.68 1.90 3.12 4.34 5.56 6.78 8.00
30.95 1991 -5.54 -3.64 -1.75 0.14 2.04 3.93 5.82
7.60 1992 -5.04 -3.05 -1.07 0.92 2.90 4.89 6.87
10.17 1993 4.69 4.02 3.35 2.67 2.00 1.32 0.65
1.19 1994 6.70 7.08 7.47 7.85 8.24 8.62 9.00
38.02 1995 -0.02 0.73 1.47 2.22 2.96 3.71 4.46
23.06 1996 0.98 1.59 2.19 2.80 3.41 4.01 4.62
33.67 1997 -14.66 -11.79 -8.92 -6.06 -3.19 -0.32 2.54
28.73 1998 -11.14 -9.77 -8.40 -7.03 -5.66 -4.29 -2.91
21.11 1999 -5.29 -4.46 -3.62 -2.79 -1.95 -1.11 -0.28
-9.11 2000 0.20 1.50 2.80 4.10 5.40 6.70 8.00
-11.98 2001 -2.30 -1.27 -0.25 0.78 1.81 2.84 3.87
-22.27 2002 13.57 13.12 12.67 12.22 11.77 11.32 10.87
28.72 2003 17.20 15.69 14.18 12.67 11.16 9.65 8.14
10.82 2004 12.75 11.89 11.02 10.16 9.30 8.44 7.57
4.79 2005 8.63 7.83 7.03 6.23 5.43 4.63 3.83
15.74 2006 35.88 32.90 29.91 26.92 23.94 20.95 17.97
5.46 2007 15.14 14.82 14.50 14.18 13.87 13.55 13.23
-37.22 2008 25.35 23.49 21.63 19.76 17.90 16.04 14.18
27.11 2009 11.62 10.81 10.01 9.20 8.40 7.59 6.79
14.32 2010 25.86 23.60 21.33 19.07 16.81 14.54 12.28

100
0
6.91
7.64
0.67
B100SP0 1 1 1 1 1 1 1 1
5.82 1.15 1.14 1.13 1.12 1.11 1.10 1.09 1.08
2.01 1.36 1.33 1.31 1.28 1.25 1.22 1.19 1.16
2.33 1.16 1.16 1.15 1.15 1.15 1.14 1.14 1.13
4.87 0.85 0.88 0.92 0.95 0.98 1.02 1.05 1.08
10.40 1.17 1.20 1.22 1.24 1.25 1.26 1.27 1.28
8.83 1.46 1.47 1.48 1.48 1.48 1.47 1.46 1.45
1.34 1.34 1.37 1.39 1.40 1.42 1.42 1.43 1.43
2.40 1.43 1.45 1.47 1.48 1.48 1.49 1.49 1.48
-1.46 1.70 1.69 1.68 1.66 1.64 1.62 1.58 1.55
-0.92 2.25 2.19 2.12 2.04 1.96 1.87 1.78 1.69
18.59 2.13 2.12 2.11 2.08 2.04 2.00 1.94 1.88
23.54 2.58 2.58 2.56 2.53 2.49 2.44 2.38 2.32
 3.98 3.18 3.13 3.06 2.97 2.88 2.77 2.66 2.54
22.80 3.37 3.37 3.34 3.30 3.24 3.17 3.09 2.99
29.30 4.46 4.44 4.40 4.34 4.25 4.15 4.03 3.89
3.24 5.31 5.22 5.10 4.96 4.79 4.61 4.42 4.20
5.62 5.61 5.51 5.39 5.24 5.07 4.87 4.66 4.44
11.05 6.55 6.40 6.22 6.02 5.80 5.55 5.28 5.01
8.12 8.64 8.30 7.92 7.52 7.10 6.66 6.22 5.77
12.89 8.35 8.15 7.91 7.63 7.32 6.98 6.61 6.23
13.40 10.93 10.53 10.08 9.59 9.07 8.52 7.96 7.40
14.81 11.76 11.40 10.99 10.52 10.02 9.48 8.91 8.33
-2.05 12.95 12.42 11.84 11.21 10.55 9.86 9.17 8.47
10.54 13.11 12.69 12.20 11.66 11.07 10.44 9.79 9.12
7.44 18.09 17.12 16.09 15.02 13.92 12.81 11.72 10.64
7.04 22.26 20.80 19.29 17.76 16.24 14.74 13.29 11.90
14.01 29.76 27.39 25.02 22.69 20.43 18.26 16.20 14.27
2.57 38.31 34.54 30.90 27.43 24.16 21.12 18.31 15.75
3.07 46.40 41.21 36.31 31.73 27.52 23.67 20.19 17.09
13.20 42.17 38.37 34.62 30.97 27.47 24.15 21.06 18.20
7.99 37.12 34.54 31.86 29.11 26.37 23.67 21.06 18.57
9.07 28.85 27.93 26.76 25.37 23.80 22.11 20.33 18.50
2.10 37.14 35.21 33.02 30.63 28.10 25.51 22.92 20.37
4.12 41.16 38.79 36.15 33.32 30.39 27.42 24.48 21.62
0.63 43.13 40.48 37.58 34.51 31.34 28.16 25.04 22.03
6.03 49.92 46.46 42.76 38.93 35.06 31.23 27.52 24.00
11.96 52.64 49.30 45.66 41.82 37.88 33.95 30.10 26.40
6.74 33.05 33.12 32.68 31.77 30.44 28.78 26.83 24.69
3.57 42.01 41.32 40.00 38.13 35.83 33.19 30.32 27.32
3.22 48.03 46.77 44.84 42.32 39.37 36.10 32.64 29.11
10.16 10.09 9.97 9.82 9.62 9.38 9.10 8.79

35
25
40
7.97
9.97
0.87
0.75
G35SP25B40 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
10.91 1.06 1.08 1.08 1.08 1.08 1.10 1.10 1.10
20.75 1.08 1.24 1.21 1.20 1.19 1.22 1.27 1.30
20.22 1.10 1.50 1.37 1.31 1.25 1.14 1.40 1.53
17.08 1.16 1.84 1.56 1.43 1.30 1.02 1.49 1.77
14.21 1.28 1.98 1.73 1.62 1.50 1.26 1.74 2.01
1.71 1.39 1.97 1.80 1.72 1.63 1.47 1.87 2.06
5.07 1.41 2.09 1.87 1.76 1.65 1.42 1.91 2.15
13.36 1.44 2.32 2.03 1.89 1.75 1.49 2.08 2.40
24.26 1.42 2.70 2.28 2.09 1.90 1.62 2.43 2.89
43.39 1.41 3.51 2.81 2.50 2.20 1.87 3.15 3.95
-2.74 1.67 3.70 3.02 2.71 2.41 2.00 3.23 3.98
8.32 2.07 4.10 3.47 3.16 2.87 2.44 3.70 4.39
11.88 2.15 4.38 3.74 3.42 3.12 2.77 4.12 4.85
5.40 2.64 4.88 4.24 3.92 3.61 3.17 4.54 5.25
15.58 3.41 5.71 5.15 4.85 4.54 4.15 5.54 6.17
11.64 3.52 6.11 5.53 5.21 4.88 4.61 6.12 6.80
11.15 3.72 6.74 6.01 5.63 5.23 4.87 6.66 7.50
7.84 4.13 7.22 6.55 6.18 5.80 5.55 7.33 8.12
6.76 4.47 7.35 6.96 6.71 6.43 6.66 8.15 8.65
4.54 5.04 8.03 7.58 7.29 6.97 6.98 8.60 9.17
11.16 5.72 8.65 8.44 8.25 8.02 8.52 9.88 10.20
6.06 6.56 9.41 9.29 9.14 8.93 9.48 10.74 10.95
3.37 6.43 9.41 9.34 9.21 9.02 9.86 11.06 11.22
6.86 7.11 10.29 10.17 10.00 9.77 10.44 11.83 12.06
12.47 7.64 10.83 11.08 11.09 11.02 12.81 13.61 13.43
8.93 8.17 11.40 11.91 12.04 12.09 14.74 15.06 14.56
8.89 9.32 12.01 13.13 13.57 13.91 18.26 17.20 15.92
4.31 9.56 11.83 13.45 14.17 14.80 21.12 18.52 16.51
4.65 9.85 11.89 13.88 14.81 15.67 23.67 19.78 17.20
3.07 11.15 13.00 15.04 15.98 16.83 24.15 20.55 18.03
-0.61 12.04 13.63 15.63 16.53 17.33 23.67 20.54 18.19
2.81 13.13 15.06 16.70 17.36 17.90 22.11 20.65 18.95
14.04 13.41 16.05 18.00 18.81 19.49 25.51 23.36 21.21
8.82 13.96 17.13 19.17 20.02 20.73 27.42 25.20 22.92
4.47 14.05 17.65 19.68 20.51 21.20 28.16 26.07 23.80
18.90 14.90 20.29 22.23 22.97 23.52 31.23 29.96 27.83
11.45 16.68 22.91 24.89 25.60 26.10 33.95 33.15 31.06
2.26 17.80 25.74 26.39 26.35 26.05 28.78 32.25 32.16
12.27 18.44 27.28 28.38 28.54 28.42 33.19 36.19 35.60
13.92 19.03 30.01 30.90 30.90 30.61 36.10 40.20 39.95
7.64 8.88 8.96 8.96 8.93 9.38 9.67 9.66
Yearly Return
Year
Gold S&P 500 10Y Bonds
1971 14.13917 14.54 5.823002
1972 43.30823 19.15 2.013514
1973 65.83051 -15.03 2.332397
1974 62.46934 -26.95 4.872721
1975 1.226724 38.46 10.4028
1976 -22.49705 24.2 8.826077
1977 18.49892 -7.78 1.339647
1978 30.86345 6.41 2.400311
1979 57.62449 18.69 -1.461417
1980 101.6239 32.76 -0.922387
1981 -25.27619 -5.33 18.58807
1982 -18.28594 21.22 23.54478
1983 12.87838 23.13 3.978555
1984 -14.89814 5.96 22.80041
1985 -12.01664 32.24 29.30391
1986 15.93417 19.06 3.244279
1987 21.36408 5.69 5.615289
1988 -2.126468 16.64 11.05377
1989 -12.83225 32 8.12361
1990 0.677628 -3.42 12.88556
1991 -5.535845 30.95 13.39559
1992 -5.037283 7.6 14.80799
1993 4.693771 10.17 -2.048241
1994 6.7 1.19 10.54077
1995 -0.018223 38.02 7.437532
1996 0.981643 23.06 7.042935
1997 -14.65628 33.67 14.00861
1998 -11.13662 28.73 2.566459
1999 -5.293758 21.11 3.068728
 2000 0.197451 -9.11 13.20251
2001 -2.303834 -11.98 7.985492
2002 13.56585 -22.27 9.069167
2003 17.19623 28.72 2.10038
2004 12.74751 10.82 4.123239
2005 8.627274 4.79 0.632507
2006 35.8804 15.74 6.02849
2007 15.13963 5.46 11.95533
2008 25.34757 -37.22 6.737022
2009 11.61535 27.11 3.568274
2010 25.8636 14.32 3.22

Yearly (average) Return

100

tion)
80
30
25 60
20
15 40
10
5 20
0
1983
1981
1979
1977
1975
1973
1971

XXX -20

Bonds -40
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009

Gold S&P 500 10Y Bonds

 X% Gold
70 80 90 100 0 10 20 30
30 20 10 0 Mix: X% B 25.85 22.86 ### ###
6.21 4.80 5.10 6.91 Mix: X% S 25.85 22.95 ### ###

B70G30 B80G20 B90G10 B100G0

8.32 7.49 6.65 5.82
14.40 10.27 6.14 2.01 Standard Deviation
21.38 15.03 8.68 2.33 Mixing 'Bonds' & 'SP-500' with 'G
22.15 16.39 10.63 4.87 1971-2010
7.65 8.57 9.49 10.40
-0.57 2.56 5.69 8.83
6.49 4.77 3.06 1.34
10.94 8.09 5.25 2.40
16.26 10.36 4.45 -1.46
29.84 19.59 9.33 -0.92
Standard Deviation

5.43 9.82 14.20 18.59

11.00 15.18 19.36 23.54
6.65 5.76 4.87 3.98
11.49 15.26 19.03 22.80
 Standard Deviatio
16.91 21.04 25.17 29.30
7.05 5.78 4.51 3.24
10.34 8.77 7.19 5.62
7.10 8.42 9.74 11.05
1.84 3.93 6.03 8.12
9.22 10.44 11.66 12.89
100 90 80 70 60 50 40 30 20 10
7.72 9.61 11.50 13.40
8.85 10.84 12.82 14.81 X%
-0.03 -0.70 -1.37 -2.05
9.39 9.77 10.16 10.54
5.20 5.95 6.69 7.44 Mix: X% Bonds & (100-x)% Gold
5.22 5.83 6.44 7.04 Mix: X% S&P 500 Index & (100-
5.41 8.28 11.14 14.01 x)% Gold
-1.54 -0.17 1.20 2.57
0.56 1.40 2.23 3.07
9.30 10.60 11.90 13.20
4.90 5.93 6.96 7.99
10.42 9.97 9.52 9.07
6.63 5.12 3.61 2.10
6.71 5.85 4.99 4.12
3.03 2.23 1.43 0.63
14.98 12.00 9.01 6.03
12.91 12.59 12.27 11.96
12.32 10.46 8.60 6.74
5.98 5.18 4.37 3.57
10.01 7.75 5.48 3.22

1 1 1
1.08 1.07 1.06
1.13 1.11 1.08
1.12 1.11 1.10
1.10 1.13 1.16
1.28 1.28 1.28
1.43 1.41 1.39
1.43 1.42 1.41
1.47 1.46 1.44
1.51 1.47 1.42
1.60 1.50 1.41
1.82 1.75 1.67
2.24 2.16 2.07
 2.41 2.28 2.15
2.88 2.76 2.64
3.74 3.58 3.41
3.98 3.76 3.52
4.21 3.97 3.72
4.72 4.43 4.13
5.33 4.89 4.47
5.84 5.44 5.04
6.83 6.27 5.72
7.74 7.15 6.56
7.77 7.09 6.43
8.45 7.77 7.11
9.59 8.59 7.64
10.58 9.33 8.17
12.47 10.82 9.32
13.45 11.38 9.56
14.34 11.94 9.85
15.60 13.25 11.15
16.22 14.04 12.04
16.67 14.87 13.13
17.91 15.58 13.41
18.89 16.33 13.96
19.17 16.50 14.05
20.70 17.66 14.90
22.90 19.65 16.68
22.43 20.11 17.80
24.29 21.30 18.44
25.61 22.23 19.03
8.44 8.06 7.64

For printing
1.00 1.00 1.00 Mix M1 M2
1.11 1.11 1.11 % Gold 0 30
1.25 1.33 1.34 % SP-500 0 0
1.15 1.54 1.61 % Bonds 100 70
 0.98 1.73 1.88 Risk (SD) 6.91 6.21
1.25 2.01 2.15 Return (CAGR) 7.64 8.88
1.48 2.09 2.19 3.00 Sharpe Ratio (3%) 0.67 0.95
1.42 2.17 2.30 4.00 Sharpe Ratio (4%) 0.53 0.79
1.48 2.44 2.61
1.64 2.98 3.24
1.96 4.17 4.65
2.04 4.10 4.52
2.49 4.52 4.89
2.88 5.08 5.48
3.24 5.41 5.77
4.25 6.37 6.67
4.79 7.12 7.45
5.07 7.86 8.28
5.80 8.55 8.93
7.10 9.32 9.53
7.32 9.72 9.96
9.07 10.99 11.07
10.02 11.72 11.74
10.55 12.15 12.14
11.07 12.95 12.97
13.92 14.81 14.59
16.24 16.29 15.89
20.43 18.14 17.31
24.16 19.28 18.05
27.52 20.43 18.89
27.47 20.96 19.47
26.37 20.74 19.35
23.80 20.95 19.90
28.10 24.01 22.69
30.39 26.10 24.69
31.34 27.22 25.80
35.06 32.09 30.67
37.88 35.61 34.18
30.44 35.30 34.96
35.83 39.90 39.25
39.37 45.23 44.71
9.62 10.00 9.97
2001
2003
2005
2007
2009
 40 50 60 70 80 90 100
### ### 8.53 6.21 4.80 5.10 6.91
### ### ### ### ### ### 18.12

viation
s' & 'SP-500' with 'Gold'

30

25

20

15

10

5
 20

15

10

0
70 60 50 40 30 20 10 0

X%

onds & (100-x)% Gold

&P 500 Index & (100-
M3 M4 M5 M6 M7 M8 M9 M10 M11
20 15 10 0 20 30 0 30 35
10 15 20 50 30 20 60 30 25
70 70 70 50 50 50 40 40 40
4.48 4.45 5.05 9.82 6.02 6.49 11.32 7.40 7.97
8.96 8.96 8.93 9.38 9.67 9.66 9.62 10.00 9.97
1.33 1.34 1.17 0.65 1.11 1.03 0.58 0.95 0.87
1.11 1.11 0.98 0.55 0.94 0.87 0.50 0.81 0.75
Sources

10-Y Treasury Bonds

http://research.stlouisfed.org/fred2/series/DGS10/downloaddata?cid=115

Title: 10-Year Treasury Constant Maturity Rate

Series ID: DGS10
Source: Board of Governors of the Federal Reserve System
Release: H.15 Selected Interest Rates
Seasonal ANot Applicable
Frequency:Annual
AggregatioAverage
Units: Percent
Date Range1962-01-02 to 2011-02-23
Last Updat2011-02-25 10:02 AM CST
Notes: For further information regarding treasury constant maturity data,
please refer to
http://www.federalreserve.gov/releases/h15/current/h15.pdf and
http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/index.html

S&P-500 Index
http://www.moneychimp.com/features/market_cagr.htm

Gold
http://www.gold.org/download/get/value/stats/statistics/xls/annual_gold_price_from_1900.xls

Downsite Standard Deviation

http://www.thisisthegreenroom.com/2010/dont-touch-that-sortino-ratio/