The variance of combined returns from two random investments will be minimized at 50/50 allocations. I think it's possible that TIPS can help up to this point, but its unlikely to help much after this point.Why?I'm not too confident in anyone's expectations, so I diversify. Since TIPS only account for 10% of the treasury market, I'd have a tough time allocating more than 50% of my fixed income towards TIPS. Overall, I'm not too worried about inflation. I'm much more worried about my portfolio surviving extreme events.
50% is already massively overweight vs TIPS market cap.
(not that market cap should dictate bonds)
Already crossed the Rubicon, why not go all in?
Statistics: Posted by Wwwdotcom — Fri Dec 27, 2024 2:21 pm — Replies 79 — Views 4072