I'm curious why you chose to use the monte carlo approach? Other tools in familiar with use historical market data instead.
A lot of what I've read suggests that monte carlo doesn't approximate the market very well. The market is not random. It has well defined historical cycles (bull, bear, sideways). Also, issues like sequence of returns appear to have a large impact on portfolio longevity. How are you thinking about these sorts of issues?
I'm curious why you chose to use the monte carlo approach? Other tools in familiar with use historical market data instead.
A lot of what I've read suggests that monte carlo doesn't approximate the market very well. The market is not random. It has well defined historical cycles (bull, bear, sideways). Also, issues like sequence of returns appear to have a large impact on portfolio longevity. How are you thinking about these sorts of issues?