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With interest rates so low as well, bond funds for me don't seem as desirable right now, even to mitigate risk. In a couple more months, as the Fed is preparing to raise rates, it may be more appropriate to move into cash/MM/CDs as opposed to the bond funds as raising those interest rates were certainly hurt the allocation. Just my two cents, take them as you will.
Pretty much agree with everyone here saying that it depends on what your AA is, what index you compare it to and the risk/volatility you are willing to endure. I don't think anybody says it is impossible to beat the S&P over the long haul, or even for a very long time, it is just that it is nearly impossible to predict it beforehand which one will be the fund that does it. Testing out the waters in different funds is costly as it encourages you to jump off the ship too early if the fund is actually good and move around. Index funds don't intend to beat the benchmark, they are the benchmark. They give lower expense ratio, so while you are waiting for market returns (sounds like such a negative phrase, especially for active fund enthusiasts, I actually think it's a positive phrase), you aren't being sucked dry.
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