DaleMaley wrote:.......... Larry is a fan of the commodities asset class, and Rick is not. From Larry’s book, I found out he is also not a fan of high yield (junk) bonds ...................
I thought it might be interesting to contrast and compare the differences between Larry’s and Rick’s recommended asset classes for asset allocation.
Heads up, This thread started over 5 years ago
Now and then it is interesting to see how different points of view unfold over time. 10 years is not a long time in the investment world but it can shed some light on opinions/recommendations given years ago. Commodities is an asset class that has generated much discussion and even a “debate” at one time. If you were to compare Vanguard’s total market represented by VTI and Pimco’s commodity fund PCRIX over the past ten years the results would look like this.
1 year VTI..........+13.97%
3 year VTI.......... +5.21%
5 year VTI...........+9.57%
10 year VTI.........+1.21%
In 2008 VTI fell 36.98%
In 2008 PCRIX fell 43.33%
Let’s now look at High Yield. Below is shown the % amount that VWEAX outperformed PCRIX over the past ten years.
1 year VWEAX.....+11.51%
3 year VWEAX......+3.37%
5 year VWEAX......+12.59%
10 year VWEAX....+.50%
In 2008 VWEAX fell 21.19%
In 2008 PCRIX fell 43.33%