Update on the Ultimate Liquidity Portfolio (the ULP)

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.

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