Date: Thu, 17 May 2007 13:49:40 -0500
From: Physlab 
Newsgroups: misc.invest.financial-plan
Subject: Re: Asset Allocation and MVO
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"I am asking :). Imposing constraints subjectively, knowing how the
asset classes have performed over the full sample, may be introducing
hindsight and biasing the results upward."

Here are my asset allocations when starting this experiment.

Large-Cap Growth = 10%   (IVW)
Mid-Cap Growth = 10%     (IJK)
Small-Cap Growth = 5%    (IJT)

Large-Cap Value = 10%    (IVE)
Mid-Cap Value = 15%       (IJJ)
Small-Cap Value = 15%    (IJS)

International = 25%    (EFA)
REITs = 10%             (ICF)

I am working to break the international into Int'l and Emerging
Markets (EEM) where the emerging markets will include China (FXI) and
other ETFs.  The emerging markets asset class will comprise 10% of the
portfolio.

The logic for the above percentages is based on Fama & French's 1992
article and my personal experience when I set up a passive portfolio
back in late 2000.

Physlab