60/40: This investing tactic was left for dead but is about to make a comeback

[hegemony]

This investing tactic was left for dead but is about to make a comeback, says strategist  

[8ball]

If the Fed is done raising interest rates then 40% in bonds, as a saftey valve, makes sense.

There is a whole group, Bogleheads, dedicated to this.

[hegemony]

14 minutes ago, 8ball said:

If the Fed is done raising interest rates then 40% in bonds, as a saftey valve, makes sense.

There is a whole group, Bogleheads, dedicated to this.

we're running 70/30 hoping for more growth

[hdporter]

I might go to 70/30 debt/equity when we start actively drawing down funds in retirement (about 5 years out), and shift to 60/40 over the next 5-10 years.  But I'm content with 5% in l/t bonds at present ... our investing horizon is still much too long to invest much in bonds until we're on the cusp of withdrawals.

 

That said, I moved $75k into a long-term treasury fund the first week of March when rate sentiment looked like it was softening.  I cashed out a third of that last week, content with a one-month 4% gain.  Inflation numbers released today give me considerable hope that the fed will restrain itself on any additional increases this year, aside from a token 1/4% at next meeting, and that CPI numbers will continue to show inflation abatement.

[swingline]

On 4/12/2023 at 10:51 PM, hdporter said:

That said, I moved $75k into a long-term treasury fund the first week of March when rate sentiment looked like it was softening. 

 

I have been thinking about using Blackrock's SGOV for quick in and out of treasury funds. 

[hegemony]

were still 70/30 even with all the inflationary fears out there.