S&P 500  2,725.27 (+0.51%)
Price Earnings Dividend Equity
Value Yield Strategies Description


These stock-weights are used for rebalancing between the S&P 500 and government bonds. A stock-weight is a number between zero and one determining how much of the portfolio to invest in the S&P 500 and the remainder is invested in government bonds. This rebalancing is done annually. Stock-weights are shown for the different strategies from this book.

For example, the medium-risk strategy which uses both the P/Book of the S&P 500 and the yield on U.S. government bonds has stock-weight 0.00 which means that 0% of the portfolio should be invested in the S&P 500 while the remaining 100% of the portfolio should be invested in government bonds with one-year maturity.

Strategy Low Risk Medium Risk High Risk
Using P/Book 0.00 0.06 1.00
Using P/Book & Bond Yield 0.00 0.00 1.00
Using Stop-Loss 0.35 0.66 -

Data used to calculate these stock-weights:

S&P 500 P/Book 2.87
U.S. Bond Yield 0.15%