Where Are The 100% Equity Bulls? BND up .44%

[Alexa9]

Wishing you had at least 20% bonds to rebalance tomorrow? BND was up .44% today

[Kenkat]

Total Bond Market Index up 0.47% today. My largest holding.

I still lost the equivalent of a Camry / Accord today

[LiveSimple]

So what ?

We are here for the long run, this 4.2% do not worry

[perl]

While I'm currently 80/20, I was 100% equities both in 2000-01 and 2008-09. Both times were great. I appreciate market crashes.

This isn't a crash. I'm not rebalancing tomorrow because I haven't hit a band.

[The Wizard]

So what.
We are here for the long run, this 4.2% do not worry.

If we have cash, we can buy more

Conversely, if you're already 100% in stocks, you can't really buy more when a situation like this hits.
Well, I suppose you could put half of your checking account balance in at 3:30 pm, but you know what I mean...

[Alexa9]

So what.
We are here for the long run, this 4.2% do not worry.

If we have cash, we can buy more

If you have cash, you're not 100% equities.

[chrischris]

I'm here! Ready to invest my tax refund when I get it.

[z3r0c00l]

Shelter in a storm, performed as expected.

[Bwlonge]

Does it serve someone to go like 80/20 to rebalance during corrections, or are you better off dumping 100% equities as you go (e.g. 401k contributions)?

[Angelus359]

Does it serve someone to go like 80/20 to rebalance during corrections, or are you better off dumping 100% equities as you go (e.g. 401k contributions)?

Nobody knows

[willthrill81]

Wishing you had at least 20% bonds to rebalance tomorrow? BND was up .44% today

If I did, then I would've only gotten a little over 80% of the returns last year that I actually did. So no thanks.

Does it serve someone to go like 80/20 to rebalance during corrections, or are you better off dumping 100% equities as you go (e.g. 401k contributions)?

Mathematically, 100/0 has resulted in higher returns than 80/20 over the long-term. The idea of a 'rebalancing bonus' resulting in higher returns is a myth.

[Agggm]

Wishing you had at least 20% bonds to rebalance tomorrow? BND was up .44% today

100% stock for life here. Nope. Don't want bonds. Not during the tech bust, nor in housing crash; never bonds.
I recall when Enron went under; buy more stocks. No timing, just that buy more stocks is my answer to every piece of economic news.

[dbr]

I'm 50/50 stocks/bonds and am 2% over the target for stocks, down from 3% over target and still 7% above the lower rebalancing band. So having 48% in bonds is not creating a need to do anything by quite a long shot.

But to answer your actual question, if I had designed 100% stocks of course I would not wish I were 20% bonds. Why would I do that?

[Bacchus01]

Wishing you had at least 20% bonds to rebalance tomorrow? BND was up .44% today

No. Actually, I don’t. Still positive for the year and nothing to even TLH.

[MrPotatoHead]

Is there some sort of point to this thread other than a sophomoric attempt to ridicule people who do not follow your investment methodology? If there is, I clearly missed the substance of it.

[RRAAYY3]

You know who brags about .44% gains ?

People who own bonds. Good night.

[whodidntante]

You know who brags about .44% gains ?

People who own bonds. Good night.

And still down for the year, I reckon.

[daveydoo]

I still lost the equivalent of a Camry / Accord today

Well, at least you put it in terms that make it sound less painful! Could have said a Prius and I'd be almost happy...

[JoMoney]

You know who brags about .44% gains ?

People who own bonds. Good night.

The 100% Equity Bulls are continuing to make their regular contributions/investments, or maybe taking their regular withdrawals, and moving on (hopefully) having well expected days like this.

[daveydoo]

You know who brags about .44% gains ?

People who own bonds. Good night.

I don't think it was so much the enormity of the gain as it was the absence of a big loss. I was grateful for my BND this past week.

[CurlyDave]

The 100% Equity Bulls are continuing to make their regular contributions/investments, or maybe taking their regular withdrawals, and moving on (hopefully) having well expected days like this.

Just staying the course. Comfortable with my choice. Sure I wish it had not gone down, but convinced it will rise to even greater heights.

[inbox788]

Total Bond Market Index up 0.47% today. My largest holding.

I still lost the equivalent of a Camry / Accord today

Yeah, but you gained 4 Camry's and Accords last 12 months. And an extra one in January, and that's the one you gave back today. Easy come, easy go. You win some you lose some. If you can't stand the heat, stay out of the kitchen.

[msk]

Hmmnnn. Strange that stocks go down because, supposedly, there is fear that interest rates are about to go up. Interest rates going up means that bonds will go down Perhaps there is something I am missing in all this. Or perhaps the talking heads have no clue as to why stocks went down I am 100% stocks and I am waiting to go substantially higher (possibly to 110% using margin) as soon as I see a 25 to 35% fall in stocks, from the recent peak. Otherwise I'll just stay at 100%

[RRAAYY3]

Wishing you had at least 20% bonds to rebalance tomorrow? BND was up .44% today

No, but I am glad I hold cash to buy

Ya know, since cash has performed better than bonds

[Bacchus01]

Hmmnnn. Strange that stocks go down because, supposedly, there is fear that interest rates are about to go up. Interest rates going up means that bonds will go down Perhaps there is something I am missing in all this. Or perhaps the talking heads have no clue as to why stocks went down I am 100% stocks and I am waiting to go substantially higher (possibly to 110% using margin) as soon as I see a 25 to 35% fall in stocks, from the recent peak. Otherwise I'll just stay at 100%

Higher rates mean lower profits as companies have higher debt service costs.


But I’m not sure how much corporate debt exists relative to history. I assume lower relative to sales levels, but not sure.

[McGilicutty]

I'm about 97% equities with no bonds. The S&P 500 is still outperforming BND for the year, but that will probably change today.

[Greg in Idaho]

I've been 70% equities, and for the past few months, wanting to move to 60%, but DW poo-poo'd the idea, and so I just said "let it ride."

Was feeling some regret until running the numbers... a small percentage of a 10% shift in AA doesn't add up to much, so...meh

[Alexa9]

Is there some sort of point to this thread other than a sophomoric attempt to ridicule people who do not follow your investment methodology? If there is, I clearly missed the substance of it.

It usually takes a big drop to scare the 100% equity people away from their strategy during a long bull run like this. This was the biggest point loss in a day ever. If you can stick to 100% equities, more power to you! I hope you're not retiring soon

You know who brags about .44% gains ?

People who own bonds. Good night.

Haha not bragging. Just showing that it's a good diversifier when the market tanks.

[RRAAYY3]

Looks like equities are cool again! Woohoo !

[willthrill81]

You know who brags about .44% gains ?

People who own bonds. Good night.

I don't think it was so much the enormity of the gain as it was the absence of a big loss. I was grateful for my BND this past week.

Unless you bought all of your stocks back in Dec., then you're probably still far ahead with stocks where you would have been with bonds.

That reduction of volatility that bonds provide comes with a price tag: significantly lower expected long-term returns.

[jadd806]

Wishing you had at least 20% bonds to rebalance tomorrow? BND was up .44% today

If I did, then I would've only gotten a little over 80% of the returns last year that I actually did. So no thanks.

Does it serve someone to go like 80/20 to rebalance during corrections, or are you better off dumping 100% equities as you go (e.g. 401k contributions)?

Mathematically, 100/0 has resulted in higher returns than 80/20 over the long-term. The idea of a 'rebalancing bonus' resulting in higher returns is a myth.

+1. Came here to say something similar. They can keep their "dry powder."

[Fundhunter]

Total Bond Market Index up 0.47% today. My largest holding.

I still lost the equivalent of a Camry / Accord today

Did you sell? If you didn't, then you lost nothing.

[MEA]

Is there some sort of point to this thread other than a sophomoric attempt to ridicule people who do not follow your investment methodology? If there is, I clearly missed the substance of it.

It usually takes a big drop to scare the 100% equity people away from their strategy during a long bull run like this. This was the biggest point loss in a day ever. If you can stick to 100% equities, more power to you! I hope you're not retiring soon

You know who brags about .44% gains ?

People who own bonds. Good night.

Haha not bragging. Just showing that it's a good diversifier when the market tanks.

For me it was good to see the pullback. I was making money so fast in the last few weeks it was beginning to scare me. I am very happy to see things back to normal.

[jadd806]

Is there some sort of point to this thread other than a sophomoric attempt to ridicule people who do not follow your investment methodology? If there is, I clearly missed the substance of it.

They're upset that they can't sit at the cool kids' table.

[GCD]

Wishing you had at least 20% bonds to rebalance tomorrow? BND was up .44% today

No, cuz I suck at calling bottoms. Gonna let my stocks ride and it'll be all good in 30 years.

[chevca]

Haha not bragging. Just showing that it's a good diversifier when the market tanks.

And, one day is enough for you to call it a good diversifier? Didn't they all go down together last Friday? How good was your diversifier then?

Probably should wait a month or two with similar stock and bond movements before starting a thread like this.

[Da5id]

Haha not bragging. Just showing that it's a good diversifier when the market tanks.

And, one day is enough for you to call it a good diversifier? Didn't they all go down together last Friday? How good was your diversifier then?

Probably should wait a month or two with similar stock and bond movements before starting a thread like this.

A month or two is not enough either for my taste, a short term view is one of the bigger investment fallacies IMHO. If you are looking at bond price changes over a small fraction of the duration of the bond fund as meaningful, you probably aren't having the right perspective. This thread is a bit trollish. I imagine if we get a seroius bear market (say 40-50% decline) there will be fewer 100% stock advocates posting, though some may stick with it. And people tend to assume one size fits all, and their circumstances/risk tolerances/etc are generally applicable. 100% stocks (or close to it) for assets allocated towards retirement is a reasonable enough position for my taste if you are say 20-30 years from retirement. If you are retiring within a few years, 100% stocks is, for me, a bad idea. Bonds will in most historic periods hurt your returns, but they will also dampen your volatility. They are pretty safe and slightly negatively correlated with stocks. How much to own is obviously a personal choice...

[GCD]

Is there some sort of point to this thread other than a sophomoric attempt to ridicule people who do not follow your investment methodology? If there is, I clearly missed the substance of it.

It usually takes a big drop to scare the 100% equity people away from their strategy during a long bull run like this. This was the biggest point loss in a day ever. If you can stick to 100% equities, more power to you! I hope you're not retiring soon

I am retired, I am 100% stocks and it works for my situation. I haven't bothered to read a single article about the drop, just headlines I couldn't avoid. I'm not sick, scared, in denial or anything. I just don't care.

By the way, the size of the point loss is meaningless. Much bigger drops have happened in the past as a percentage basis. The point loss is big because the Dow, S&P, etc. have climbed so high. You do comprehend that right?

By the way, I stayed 100% in 2000 and 2008.

But if market timing works for you, go for it!

[Fundhunter]

Wishing you had at least 20% bonds to rebalance tomorrow? BND was up .44% today

No, cuz I suck at calling bottoms. Gonna let my stocks ride and it'll be all good in 30 years.

EVERYBODY sucks at calling the bottoms, which is why you shouldn't try. Stay the course and unless you are in (or close to) withdrawal stage (like me) nothing wrong with being heavy into equities. Even in withdrawal I am around 60% equities, although of course all withdrawals come from fixed income.

[technovelist]

Just 100%? What wimps! Don't they know that being 200% equities gives you even more gains?

Note: don't try this at home, kids!

[grettman]

I am 90% equities. I am where I have always been for the last 25 years.

Staying the course.

By the way, what is the purpose of this post and is it actionable?

[Da5id]

By the way, what is the purpose of this post and is it actionable?

The purpose appears to be provoking? And unclear that the one day price move of BND is all that actionable or interesting, given that on Friday it fell pretty hard along with the stock market.

[LFKB]

What an odd post. The stock market is all the way down to where it was one month ago. Unless you put your life savings in the market within the last few weeks, this is not even a re-balancing opportunity for those holding bonds.

I am 95% equities and put about $50k of my bonus that I received last week into the market.

[Tamalak]

100% equity bull here. 0.44% is to laugh at for someone who's absorbed the past few years of market returns

[Da5id]

Today's market shows that this thread is ill conceived. BND (total bond) is down currently 0.29%, VTI (total stock) is up 1.31%. A day/month/year's results is not relevant to the decision of how much/whether one should hold bonds.

[Kenkat]

Total Bond Market Index up 0.47% today. My largest holding.

I still lost the equivalent of a Camry / Accord today

Yeah, but you gained 4 Camry's and Accords last 12 months. And an extra one in January, and that's the one you gave back today. Easy come, easy go. You win some you lose some. If you can't stand the heat, stay out of the kitchen.

Oh, I can stand the heat...started in the late 80’s and haven’t panic sold yet...

[Kenkat]

Total Bond Market Index up 0.47% today. My largest holding.

I still lost the equivalent of a Camry / Accord today

Did you sell? If you didn't, then you lost nothing.

No, never deviate from my plan. I am looking at making back at least a Fit or Yaris after today’s bounce back.

[LadyGeek]

We have an on-going discussion. See: U.S. stocks in freefall

This thread is locked to redirect the discussion. Please state your concerns in a civil, factual manner.