Whisper9999
Recycles dryer sheets
- Joined
- Jul 5, 2004
- Messages
- 173
One of the things I found very powerful was the 4% and the body of research around it. If I understood it right, it was based on backtesting a portfolio of a majority of SnP indexed stocks and a minority of fixed interest instruments.
Now what is interesting to me is that I have the majority of people have "diverged" from that pattern during the time of low interest rates and are investing in REITS, foreign markets, junk bonds, etc. And that seems logical with int. rates at (I beleive) historic lows and dang near zero.
But I'm interested in the investing psychology of all of this. I'm wondering if everyone who has "diverged" is going to go back to the original mixtures (that adhere more to the 4% Rule studies) once intersest rates start to rise again to a respectable level?
Now what is interesting to me is that I have the majority of people have "diverged" from that pattern during the time of low interest rates and are investing in REITS, foreign markets, junk bonds, etc. And that seems logical with int. rates at (I beleive) historic lows and dang near zero.
But I'm interested in the investing psychology of all of this. I'm wondering if everyone who has "diverged" is going to go back to the original mixtures (that adhere more to the 4% Rule studies) once intersest rates start to rise again to a respectable level?