Thank you! Thinking When I am ready to allocate at least 10% to bonds, I'll go with TLTReally simple, long term treasuries. Generally speaking, they zag when equity zigs due to lack of correlation. They are volatile (which is what you want) and can have very large returns, perfect for rebalancing. Stay away from anything short or TIPs related. Total Bond includes corporate which is more correlated to stocks and will not have the same effect. Run an asset class back test on PV and it will be fairly obvious.I'm not looking for bonds to reduce volatility and serve as a psychological support during down markets. I have faith that I will buy into stock market dips/drawdowns... and know bonds will reduce long-term returns and want to avoid that as much as possible.
What I am looking for is a bond allocation that will be stable or up during the next stock market downturn to help rebalance into cheaper equities, understanding that has been the historical trend except for outlier 2022.
Statistics: Posted by TextualChocolate — Sun Dec 29, 2024 2:00 pm