401(k), Asset Allocation, Papers

A Dynamic Asset Allocation Approach to Investing II (xlxs & pdf)

Abstract: In this paper, we build on the 2016 paper. In addition to the use of fundamental asset class inputs, we added technical inputs to make the asset allocation changes more robust. For a short-term trend indicator, we used the Elliott Wave Oscillator. For an intermediate-term indicator, we used the golden cross. We find a cumulative asset growth advantage of 58% vs. a 100% stocks allocation and 70% vs. a strategic asset allocation approach (60% stocks, 40% bonds) from October 1992 through September 2020.

Here’s the xlxs-

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