Bond returns
Bond returns
With all I am trying to learn about 3-fund portfolios, and with everyone on CNBC and elsewhere talking about the "ending" bull market in bonds, is it truly wise to place such a high percentage of a portfolio in these bond funds?
Re: Bond returns
"Bond market crash" (if it ever occurs) will be magnitudes less than your typical stock market crash. I use high quality bonds (total bond market) to cushion the volatility and potential losses of my stock portfolio. I do not have high expectations for bond returns, but if they happen than it is a bonus. I will stay the course with my 3 funder.
Re: Bond returns
What high percentage of portfolio in bonds? A young investor might hold 20% in bonds. An older investor as much as 60%. What are you talking about in your case?doglover wrote:With all I am trying to learn about 3-fund portfolios, and with everyone on CNBC and elsewhere talking about the "ending" bull market in bonds, is it truly wise to place such a high percentage of a portfolio in these bond funds?
No doubt it is wise to recognize that bond returns going forward may not be large. Thinking that there will be permanent losses of 10's% in bonds is simply not so. You can assume that there will be 10's% losses in stocks at various points in time though most probably not permanent.
What is your understanding of the role of bonds in your portfolio?
Re: Bond returns
" An older investor as much as 60%."
I have 65%.
I have 65%.
Chaz |
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“Money is better than poverty, if only for financial reasons." Woody Allen |
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http://www.bogleheads.org/wiki/index.php/Main_Page
Re: Bond returns
I am looking forward the big bond crash. When it happens I will buy more bonds.doglover wrote:With all I am trying to learn about 3-fund portfolios, and with everyone on CNBC and elsewhere talking about the "ending" bull market in bonds, is it truly wise to place such a high percentage of a portfolio in these bond funds?
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Re: Bond returns
With what? What if stocks are down at the same time? You may only be able to use cash for this.kayo wrote:I am looking forward the big bond crash. When it happens I will buy more bonds.doglover wrote:With all I am trying to learn about 3-fund portfolios, and with everyone on CNBC and elsewhere talking about the "ending" bull market in bonds, is it truly wise to place such a high percentage of a portfolio in these bond funds?
Best regards, -Op |
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"In the middle of difficulty lies opportunity." Einstein
Re: Bond returns
Via the same methods I use to buy bonds and equities today:Call_Me_Op wrote:With what? What if stocks are down at the same time? You may only be able to use cash for this.kayo wrote:I am looking forward to the big bond crash. When it happens I will buy more bonds.doglover wrote:With all I am trying to learn about 3-fund portfolios, and with everyone on CNBC and elsewhere talking about the "ending" bull market in bonds, is it truly wise to place such a high percentage of a portfolio in these bond funds?
1. Biweekly payroll deductions
2. Monthly distributions from income funds
3. Other distributions that come my way
I just keep buying. I don't know any better.