Portfolios in the Crash

The 2008 crash in the stock market has seriously damaged ESP's assumptions built into the canned asset classes. As I understand it, the S&P 500 is the index we are supposed to compare with in defining new asset classes. But the S&P has now not delivered 9.16 % APR, in fact it has delivered 6.27% in the last 20 years and is slightly negative for the last 10. There are several mutual funds I use that have outperformed it over a substantial time, some with less risk.

So I am having trouble modeling the funds I want to use, because I don't know what to put in for the requested parameters, especially the nominal rate of return (APR). I don't necessarily expect them to beat 9.16% going forward, but I do expect them to beat the S&P, at least on a risk adjusted basis. Some of them have very low correlation with the S&P.

Will the upcoming version of ESP adjust the built-in presumptions about the large cap stock asset class to reflect recent reality? If so, I would be more comfortable assigning an APR of something more than that to my funds.

Lynn Grubb