Almost every where you look now a days you see...
there should be a mutual fund split of 70 percent stock funds to 30 percent bond funds, or 80-20, or 60-40.
Mutual fund AA are always talking in splits between stock mutual funds and bond mutual funds.
Here is my worry. I think the Fed has kept the bonds so artificially low for so long that the bond mutual funds have had a huge run up-- though artificial also. Hence, I believe that a bubble may burst and these bond mutual funds may crash.
If this happens, the stock funds should be okay, but what about the bond funds? These 'safe' portions of AA may just seriously hurt a portfolio.
So, what to do? Invest solely in stock mutual funds? Risky. Stock mutual funds, and what else, money markets?
there should be a mutual fund split of 70 percent stock funds to 30 percent bond funds, or 80-20, or 60-40.
Mutual fund AA are always talking in splits between stock mutual funds and bond mutual funds.
Here is my worry. I think the Fed has kept the bonds so artificially low for so long that the bond mutual funds have had a huge run up-- though artificial also. Hence, I believe that a bubble may burst and these bond mutual funds may crash.
If this happens, the stock funds should be okay, but what about the bond funds? These 'safe' portions of AA may just seriously hurt a portfolio.
So, what to do? Invest solely in stock mutual funds? Risky. Stock mutual funds, and what else, money markets?