So I've got my asset allocation, and it is relatively simple bond index, large cap index, small cap index, and intl stock index.
Everyone believes interest rates will rise, causing bond index fund to suck. So why do I have money in this bond index fund right now then? I'd like to stay the course and maintain my asset allocation, but it is making me crazy thinking that I have this much money (28%ish) of my portfolio in something that almost seems guaranteed to underperform in the near future.
Am I putting to much faith in interest rates and ensuing results of bond index fund? What other choice is there?
Thanks, and happy Tuesday!
Everyone believes interest rates will rise, causing bond index fund to suck. So why do I have money in this bond index fund right now then? I'd like to stay the course and maintain my asset allocation, but it is making me crazy thinking that I have this much money (28%ish) of my portfolio in something that almost seems guaranteed to underperform in the near future.
Am I putting to much faith in interest rates and ensuing results of bond index fund? What other choice is there?
Thanks, and happy Tuesday!