No. of Recommendations: 7
Curious as to what percent of your portfolio or net worth people would do this with?
Depends on how greedy you want to be. ;-)
And how much confidence you have in the GTR1 backtests.
To handle your fear of losing big, I recommended to my kids to start with $10,000 or whatever, and when it doubles to $20,000 take out $10,000 and put it in a money market fund like ICSH or BIL. Now you've got your initial money back and are "playing with house money". (Which isn't actually a thing -- when the money hits my account it is MY money and not the house's money anymore.)
What percentage? Given the high volatility and large drawdowns I wouldn't go above 20%-25%.
That could be a difficult thing to do if you have a time like I had in the last 18 months where the screen more than doubled. Even after the recent crashes I've got portfolios with CAGRs of 82% and 63% and 52%. Couple of years like that and the 25% of the portfolio suddenly is 50%.
Moving half of it to a 3% MM fund can be a tough thing to swallow. Tug of war between fear and greed.
