Easier for me to answer, since I can float my mouse over the charts and see values.looking at McQ's graphs, what's the difference in standard deviation for Bnd vs IT for an 80-20 portfolio?Impacts it how? As in greater risk?? no, just the opposite. the roller coaster ride that BND can have is not what I want for the ballast portion of the portfolio. I also just do not want corporate or reit swaps or anything else in there. My risk is in the us and international stock index funds.Do you feel using an IT fund instead of bnd in an 80-20 portfolio significantly impacts your risk?McQ this is a great article!
I run a 3 fund portfolio (80% stocks/ 20% bonds) 60/20 domestic/intl stocks split and my bond portion is in the intermediate treasury fund. It occured to me a decade ago that ballast meant safety and I want all my risk on the stocks side with no surprises on the safety/ballast side.
I may switch to ST treasuries or likely just a TIPS ladder once I hit my 60s.
Bear case SD: IT blend 13.8%, BND blend 14.2%
Bull case: IT blend 12.9%, BND 13.2%
In general, as noted above, if stocks dominate the blend, as in 80:20, the difference between the different bond blends reduces to small male rodent generative organs.
It's when the stock proportion drops below 40% that the differences begin to loom larger. Left side of the performance lines, to put it simply.
Statistics: Posted by McQ — Thu Mar 28, 2024 10:49 pm — Replies 43 — Views 4751