I am sure that I am not the first one to ever bring this up-- but I have a theory about asset allocation.
How about 75% percent in good reliable stock mutual funds and 25% in good reliable bonds (of which can withstand a Bear Market, such as GNMA). Hopefully during the Bull Market, the good stock mutual funds will bring in a healthy income. But when the Bear Market hits (which nobody can really predict when), after a couple of months start dollar cost averaging out of the bonds and into the stocks. Hopefully you can dollar cost average to the bottom of the Bear then back up the other side. Then when things are normal again, you should have made a tidy bundle.
I know this seems simplistic and it has probably been tried before. Forgive me. I just don't see down side to this. Please enlighten me.
Thanks.
How about 75% percent in good reliable stock mutual funds and 25% in good reliable bonds (of which can withstand a Bear Market, such as GNMA). Hopefully during the Bull Market, the good stock mutual funds will bring in a healthy income. But when the Bear Market hits (which nobody can really predict when), after a couple of months start dollar cost averaging out of the bonds and into the stocks. Hopefully you can dollar cost average to the bottom of the Bear then back up the other side. Then when things are normal again, you should have made a tidy bundle.
I know this seems simplistic and it has probably been tried before. Forgive me. I just don't see down side to this. Please enlighten me.
Thanks.