TUK020 wrote:I am afraid that I have a bit of a problem with this chart. It is misleading. Less so visually, now that the 'y' axis starts at zero. However, the 'y' isn't defined.
I believe it is normalised income, and thus the graph shows trends in income, but not absolute income from a fixed investment level.
On an absolute income from a fixed investment level, the HYP portfolio would start with a higher income than the IT basket. Admittedly, to 'de-risk' this, you would need to hold some HYP income in reserve, and then you would get something that looks more like the IT basket, but all of that is glossed over in a chart with no 'y' axis defined.
On an absolute income from a fixed investment level, the HYP portfolio would start with a higher income than the IT basket.
Indeed it does, and you may have missed the relevant chart I published in a neighbouring thread:
viewtopic.php?f=31&t=28808
This shows income generated by an investment of £100 at the beginning of the chart.
Arb.