Just a quick update on the Ultimate Liquidity Portfolio (the ULP).
Year to date, the ULP has returned 1.78% - still better than cash like alternatives (under 1% this year, yuck), although below its typical return of inflation + 2% - 3%. This happens…and doesn’t change my recommendation.
For those of you who switched to the slightly more optimized 3-Asset ULP mentioned in the 2021 edition of the book, this year the return has been 3.22%. Here are the longer-term results for each strategy, annualized, as a reminder.
3 years = 6.8%, 7.0%
5 years = 4.4%, 5.2%
10 years = 4.1%, 4.6%
40 years = 8.2%, 8.1
Although the performance of the three asset portfolio is a little better (in addition to the returns, it provides slightly more downside protection), I still don’t think it is worth the additional complexity of a third asset for the purposes most people use the ULP, which is as an emergency or opportunity fund.
