Marseille07 wrote: ↑Mon Jul 04, 2022 10:25 pm
smectym wrote: ↑Mon Jul 04, 2022 10:16 pm
That’s what I did several months back. Left stocks alone; shortened bond duration. Whether either decision was correct, very much remains to be seen.
I don't hold bonds, but the more I
look at them the more I feel people should just stay the course. Now, whether BND is appropriate or something shorter would be appropriate is a different question.
I'd be curious for what
you see when you "look"...
What I've seen is a few years ago the louder camp had the view that rates would and could continue to fall, that going into negative rate territory was on the horizon... The other camp had the view that rates had to come up sometime... But most people laughed off ideas of I Bonds and TIPS. (I was buying them then - as they were part of my plan.)
When rates started going up, I Bonds and TIPS started becoming super popular - with threads upon threads discussing them (before being merged).
Throughout both periods, a small group basically yawned said "I've seen this before..." And I'm butchering the statistic, but I want to say there's one about people falsely predicting which way interest rates were moving is far, far, far more common that most people expect.
With that in mind, I'm of the view "there's nothing to see here". The markets are doing what they've done before, and will do again. I've set my AA, plotted my course, and the rest is the noise of the day that's trying to veer me off course. My job is to try to tune it out, and keep the ship sailing in the direction I plotted. In other words, "stay the course"...
So if you have insights I'm missing, I'm always eager to learn!