Book on LT Treasuries?

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Gufomel
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Book on LT Treasuries?

Post by Gufomel » Wed Mar 25, 2020 7:52 am

I remember several people referring to a great book on LT Treasuries, but I can’t find the name of it now. It might have been by Swedroe? I’m not sure if the book is specifically about LT Treasuries, but my understanding was that a major premise of the strategy outlined in the book is that LT Treasuries should be a part of a long-term portfolio.

bgf
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Re: Book on LT Treasuries?

Post by bgf » Wed Mar 25, 2020 8:02 am

sounds like Swedroe's "The Only Guide You'll Ever Need." For portfolios with 80% equity or higher allocation, he prefers long term treasuries for bond allocation. the higher returns beat out the higher volatility of such an equity heavy portfolio.
“TE OCCIDERE POSSUNT SED TE EDERE NON POSSUNT NEFAS EST"

Topic Author
Gufomel
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Re: Book on LT Treasuries?

Post by Gufomel » Wed Mar 25, 2020 8:21 am

bgf wrote:
Wed Mar 25, 2020 8:02 am
sounds like Swedroe's "The Only Guide You'll Ever Need." For portfolios with 80% equity or higher allocation, he prefers long term treasuries for bond allocation. the higher returns beat out the higher volatility of such an equity heavy portfolio.
Thank you!

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Gufomel
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Re: Book on LT Treasuries?

Post by Gufomel » Wed Mar 25, 2020 8:29 am

What’s the reason for this primarily just being for those with 80/20 or higher allocation?

I also recall mention somewhere on this forum that 70/30 with the “30” being split between LT Treasuries & ST TIPS is better on the efficient frontier than 60/40 with the “40” just being in Total Bonds. Is that from the same book?

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dunkmachine
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Re: Book on LT Treasuries?

Post by dunkmachine » Wed Mar 25, 2020 2:49 pm

Gufomel wrote:
Wed Mar 25, 2020 8:29 am
What’s the reason for this primarily just being for those with 80/20 or higher allocation?
I would bet that with just a 20% bond allocation you can take on more risk/volatility that are inherent to LT treasuries.

I know David Swenson recommends your bonds to be split 50/50 between US treasury bonds and TIPS. I believe he stated that he no longer prefers LT treasuries and recommends matching average duration of the market, so would recommend more an intermediate term treasury. I think something like iShares GOVT ETF would work for this portion.

UpperNwGuy
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Re: Book on LT Treasuries?

Post by UpperNwGuy » Wed Mar 25, 2020 2:55 pm

dunkmachine wrote:
Wed Mar 25, 2020 2:49 pm
I think something like iShares GOVT ETF would work for this portion.
It has always mystified me that Vanguard hasn't created a mutual fund/ETF pair to compete with iShares GOVT ETF. it seems like it would appeal to many conservative investors who don't want to hold corporate or mortgage-backed, yet don't want to limit themselves to treasuries of a single duration.

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