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If you want diversification, wont long term corporate bonds be the ticket
Old 12-05-2011, 06:12 PM   #1
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If you want diversification, wont long term corporate bonds be the ticket

Hello,

I have posted a few times but mostly I just enjoy reading all of the posts and learning what I can. If diversification is best when assets negatively correlate, I was wondering what you all thought of a portfolio 35% bonds comprised of vanguard long term investment grade corporate, 65% stocks made of 50% TSM and 15% total international stock from vanguard. The chart is here:
VANGUARD INDEX TRUST TOTAL STOC Fund Chart - Yahoo! Finance


Please give me your thoughts. I see some excellent strong negative correlation. I understand people typically recommend treasuries as a flight to quality ensues in bear markets but is this not just as good? Why/ why not?

Please advise

Thanks.
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Old 12-05-2011, 06:40 PM   #2
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Psst Wellington.

I like the way you are thinking, but I'd probably buy total bond market instead of VWESX if you want diversity.
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Old 12-05-2011, 08:46 PM   #3
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Want non-correlation? Add PCRIX and some REITs with a sprinkling of Emerging Markets
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