How do I model total capital loss using Monte Carlo?
I want to model my stock/bond ratio changing over time. E.g. I start off with 70/30 and expect to end with 0/100. I model this by using Monte Carlo and creating a portfolio for each decade or so with the set stock/bond ratio for that decade.
However a scenario I want to model is essentially the equivalent of upside investing. Which is, what happens if all my stock money (including the principal) is lost at a specific point in time? I would model this by specifying an investment in one of the portfolios that has effectively a -1 return.
But I've never been able to enter any values for a custom asset without E$Planner losing it's mind. Can someone give me asset settings that will work with a -1 return? I don't care what the variance of correlation is since I ignore everything but the median anyway.
In other words I only use Monte Carlo because it lets me have portfolios, not because I think Monte Carlo simulations are useful for modeling stock market behavior.