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re: Almost 45 trying to determine where I want to be bond vs equity mix now that there is rate

Posted on 5/4/24 at 8:25 am to
Posted by I Love Bama
Alabama
Member since Nov 2007
37743 posts
Posted on 5/4/24 at 8:25 am to
The bond market has changed dramatically in the last few years with the amount of debt we have now.

It is experiencing historical draw downs that we have not seen before.

Bond prices are trading at 2013 levels

You are only 45, stay in the S&P 500 (even though only 10 of the companies are responsible for 90% of the growth) and consider a small portion of your portfolio to a hard asset that can't be printed out of this air (gold/BTC)

Seriously, at 45 there is no reason to have any money in bonds. If you were 70, my opinion on the matter would change slightly.

Posted by Rize
Spring Texas
Member since Sep 2011
15846 posts
Posted on 5/4/24 at 9:27 am to
I haven’t changed anything in my 401k in 12 years. Just went and looked and my bonds were sucking arse. Moved it to S&P 500 because it was out performing everything else I’m in except for my company stock.
Posted by Art Blakey
Member since Aug 2023
100 posts
Posted on 5/5/24 at 7:30 am to
quote:

The bond market has changed dramatically in the last few years with the amount of debt we have now.

It is experiencing historical draw downs that we have not seen before.

Bond prices are trading at 2013 levels

You are only 45, stay in the S&P 500 (even though only 10 of the companies are responsible for 90% of the growth) and consider a small portion of your portfolio to a hard asset that can't be printed out of this air (gold/BTC)

Seriously, at 45 there is no reason to have any money in bonds. If you were 70, my opinion on the matter would change slightly.


In a regime of fiscal dominance where debt/gdp must be shrunk to avoid govt insolvency long bonds are certificates of confiscation, reward free risk.
Posted by NC_Tigah
Carolinas
Member since Sep 2003
124273 posts
Posted on 5/6/24 at 5:34 pm to
quote:

You are only 45, stay in the S&P 500 (even though only 10 of the companies are responsible for 90% of the growth) and consider a small portion of your portfolio to a hard asset that can't be printed out of this air (gold/BTC)

Seriously, at 45 there is no reason to have any money in bonds. If you were 70, my opinion on the matter would change slightly.
This.
I wish I could justify a significant bond position. ROI is just not competitive ... yet.
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