## Portfolio Backtester

## Portfolio Analysis for Scott Burns Couch Potato Portfolio

The Couch Potato portfolio is a very simple, lazy portfolio created by [Scott Burns](https://scottburns.com), a personal finance columnist.

Its allocation consists of 2 asset classes which are equal weighted:

- **50% in S&P 500:** Since 70 percent of all managed funds tended to trail the S&P 500 index, this broad index was chosen.

- **50% in US Intermediate Term Treasury:** Originally the Lehman Intermediate Bond Index was chosen by Scott.

The backtesting period is limited by the inception date of S&P 500 (US Large Cap) (SP500.X): Jan 31, 1871.

## Overview

A quick overview of the assets within the portfolio, its performance and main metrics.

The portfolio consists of 2 asset classes, which are all equally weighted.

Name / Ticker | Type | Currency | Inception | Weight |
---|---|---|---|---|

S&P 500 (US Large Cap) SP500.X | Asset Class | USD | Jan 31, 1871 | 50% |

Intermediate-Term Treasury MTTREASURY.X | Asset Class | USD | Dec 30, 1870 | 50% |

### Metrics

Portfolio Score | Scott Burns Couch Potato Portfolio |
---|---|

Portfolio Score |

Returns | Scott Burns Couch Potato Portfolio |
---|---|

Month-to-Date | 1.34% |

Year-to-Date | 8.84% |

3M | 4.51% |

6M | 9.68% |

Annualized Return (3Y) | 4.21% |

Annualized Return (5Y) | 7.73% |

Annualized Return (10Y) | 7.24% |

Annualized Return (20Y) | 7.12% |

Annualized Return (All, 153.4Y) | 7.19% |

Risk | Scott Burns Couch Potato Portfolio |
---|---|

Annual Volatility | 4.89% |

Max Drawdown | -50.83% |

Sharpe Ratio | 1.42 |

Sortino Ratio | 2.03 |

Adjusted Sortino Ratio | 1.44 |

With a projected annual return (CAGR) of 7.19% and an initial investment of $10,000, Scott Burns Couch Potato Portfolio would have the following projected capital growth over the next 50 years.

Year | Starting Capital | Ending Capital | Total Gain | Avg Monthly Gain | Cumulative Return |
---|---|---|---|---|---|

$10,000 | $10,719 | $719 | $60 | 7.2% | |

5 | $14,150 | $15,168 | $1,017 | $85 | 51.7% |

10 | $20,024 | $21,463 | $1,440 | $120 | 115% |

15 | $28,334 | $30,372 | $2,037 | $170 | 204% |

20 | $40,095 | $42,977 | $2,883 | $240 | 330% |

50 | $321,894 | $345,039 | $23,144 | $1,929 | 3,350% |

## Returns

A detailed look at the returns of the portfolio(s).

Portfolio | All (153.4Y) | 20Y | 10Y | 5Y | 3Y | 1Y |
---|---|---|---|---|---|---|

Scott Burns Couch Potato Portfolio | 7.19% | 7.12% | 7.24% | 7.73% | 4.21% | 15.34% |

Year | Scott Burns Couch Potato Portfolio |
---|---|

1871 | 7.12% |

1872 | 7.68% |

1873 | -1.42% |

1874 | 12.38% |

1875 | 4.74% |

1876 | -2.32% |

1877 | 0.96% |

1878 | 9.22% |

1879 | 26.27% |

1880 | 14.62% |

### Summary

Portfolio | Positive Years | Negative Years | Positive Ratio | Best Return Years | Worst Return Years |

Scott Burns Couch Potato Portfolio | 123 | 31 | 79.87% | 154 | 154 |

## Risk

Let's analyze how much risk the portfolio(s) have.

Start | Valley | End | Days | Max drawdown | Chart |
---|---|---|---|---|---|

1929-10-01 | 1932-06-30 | 1936-01-16 | 2298 | -50.83% | |

2007-12-11 | 2009-03-09 | 2010-03-16 | 826 | -24.8% | |

1937-04-01 | 1938-04-29 | 1943-02-01 | 2132 | -20.81% | |

1987-08-26 | 1987-10-19 | 1989-04-10 | 593 | -19.24% | |

1973-02-01 | 1974-09-30 | 1975-05-30 | 848 | -18.25% |