Global Predictions Benchmarks

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Global Predictions Forecasting and Optimization System Outperforms Benchmarks by 3-6% Per Year

We find via simulation that the Global Predictions forecasting and optimization engine would have outperformed a Global 60/40 Benchmark portfolio (industry standard) and an Equal-Weighted Universe of constituent securities (globally diversified mix of stocks and ETFs) by 6% and 3% per annum, respectively, when evaluated at 12% annualized volatility and run since 2015 and rebuilt every month with data only available at point-in-time. While any such backtest is just one view into a hypothetical historical outcome, we believe this simple and transparent demonstration gives credence to the power of diversification, systematic forecasting, and portfolio optimization that all investors can take advantage of.

Disclosures: “Historical market outcomes are not indicative of future results. Hypothetical performance results have many inherent limitations, some of which, but not all, are described herein. This is not investment advice. Please refer to the important disclosures at the end of the PDF document.”