audreyh1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I’m getting ready to buy quite a few bond funds this week to get back to my target AA. It's been a year since I rebalanced.
Stock funds were already trimmed last year, mainly via distributions paid in Dec, plus a few small trims. I’m close enough to the target stock allocation that I’ll leave it alone.
It will be interesting to see how bonds fare this year. Interest rates really moved up on the short end last year and are near 1 year highs now. Intermediate rates moved up less. It could go either way this year - if inflation increases (consistently exceeding 2%) interest rates could rise substantially to steepen the yield curve, and the Fed would likely be more aggressive raising the Fed Funds rate. If inflation remains under target as it did last year, long term rates should be stable or even drop, and intermediate rate changes muted. Short rates should continue to move up as long as the Fed raises the Fed Funds rate, flattening the yield curve.
I rebalance regardless of outlook. Predictions are often wrong. Unexpected things often happen.
Stock funds were already trimmed last year, mainly via distributions paid in Dec, plus a few small trims. I’m close enough to the target stock allocation that I’ll leave it alone.
It will be interesting to see how bonds fare this year. Interest rates really moved up on the short end last year and are near 1 year highs now. Intermediate rates moved up less. It could go either way this year - if inflation increases (consistently exceeding 2%) interest rates could rise substantially to steepen the yield curve, and the Fed would likely be more aggressive raising the Fed Funds rate. If inflation remains under target as it did last year, long term rates should be stable or even drop, and intermediate rate changes muted. Short rates should continue to move up as long as the Fed raises the Fed Funds rate, flattening the yield curve.
I rebalance regardless of outlook. Predictions are often wrong. Unexpected things often happen.
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