AA & Bond Funds- Now or Wait?


Recycles dryer sheets
Mar 13, 2006
I recently added a chunk of cash to my 401K. I have invested the equity portion of my AA but I have delayed adding to my bond position. (5 year index and TIPS) It seems pretty clear that the next move in bonds is almost surely upward (Nobody knows but I am willing to bet my money on upward movement). That would create a loss in bonds and bond funds.

Looking for comments - should I just buy the bond funds now or wait? And if wait - wait in what?
Nobody knows what will happen with bond yields. So if you are sticking to your AA, then do it. Otherwise, check your crystal ball.
If this is long term and you have set your AA then buy now. There is even less utility in trying to time the bond market as the equity market. I'm currently buying TIPs every 2 weeks in my 403b as that is the asset that is lagging most currently.

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