"Age-In-Bonds" In 2012 (Scorecard Q3)

Bozo
  |     |   1,375 posts since 2011

For those who missed it, the results for Q3 are in. Bond funds did well, stock funds did much better, CDs flat-lined.

While I understand the reluctance of some to plunk any money whatsoever into equities, it would appear that any rational investor would re-visit that idea from time to time. Regrettably, most often, the idea is revisited when stocks have peaked (as now?) and fixed-income yields have tanked.

Perhaps the obvious "middle ground" is to select an age-appropriate asset allocation, re-balance periodically, and let Mr Market have fun. If you want to trade stocks, that's fine, but limit your gambling to 5% of investable assets. The bulk of equity investments should be in low-cost index funds.

FWIW, as most here know, I prefer a longish CD ladder to bond funds, but own both. I have 100 minus age in equities (aka "age-in-bonds"). This year has been kind thus far.



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