[kqr]

> Ultimately I think your objection to the portfolio is because you think it’s advantageous to take on more risk. For a young investor with high risk tolerance I agree with you,

I agree with everything you write except this bit deserves an expansion.

There is a growth-optimal balance between assets and it depends only on the joint probabilities of future returns, which means it's unknowable -- but it also means it depends not at all on the age of the investor. (Which makes sense, if you think about it -- why would the optimal growth rate depend on the age of the person owning the money?)

However, the optimal growth rate is only guaranteed asymptotically, and aiming for it could result in some wild swings up and down before getting there, so for people without infinite time on their hands it makes sense to keep a higher proportion of wealth in low-risk assets.