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I am not tied strongly to a precise 60-40 Equities-Bonds split as others seem to be from reading their postings, but I do feel a mix should be part of everyone's portfolio. I guess the most surprising thing to me in this article was the claim the 60-40 split has only been preferred for the past 20 years. Really? I am somewhat certain I first learned of it in a Personal Finance Course in College 40+ years ago.
Regardless; here is the link to the Market Watch article.
This is the challenge I am facing with new money and a shorter time horizon because of age and target dates. I just was crunching numbers, came in the forum and saw this very timely post and article. My comment is in the context of my just made CCRC financing thread which you are a part of.
Long term Treasuries still have a place ,when the negative part of the cycles hit as they always do eventually ..unless high inflation is involved .....few Of us want a higher allocation in retirement than 60% equities...
The gains on long term treasuries can run as high as the losses in equities so I don’t totally rule out the usefulness of bonds .... I started nibbling at Tlt again today along with gld while still still cutting back on my corporate and high yield bonds which had a great run
Interest rates are just low and any shock will see them go negative, like elsewhere in the rich world.
And you respond how? Your post is the heart of the linked article and why 60-40 might not work like it has before. So how do you personally propose to invest moving forward toward retirement and your personal time horizon?
I still don’t get the conclusion for that article, what did they suggest instead.
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