9eB1 comments on Open Thread, Jun. 15 - Jun. 21, 2015 - Less Wrong

5 Post author: Gondolinian 15 June 2015 12:02AM

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Comment author: 9eB1 18 June 2015 07:18:40AM 1 point [-]

Theoretically, the market portfolio, which is the efficient portfolio according to Modern Portfolio Theory should replicate the world's assets weighted by value. For America, household (and non-profit) net worth is ~$85T and the value of real estate holdings is ~$14T (value less mortgages) (source), so about 16% is pretty justifiable. This is all pretty back of the envelope though.