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What’s Accenture’s S&C bonuses like usually?
Conversation Starter
Additional Posts in FIRE Financial Independence Retire Early
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Subject Expert
What do you think bonds could do in the past that they can't do now? What do you want them to do for you?
With solid interest rates, the availability of TIPS, and way easier availability of duration management tools like ladders, bullet funds, and so on, it seems to me like bonds can do more for you now than they could for most or all of the past.
Subject Expert
Well, of course not. :)
Bonds values are not a problem if you use them for income and hold to maturity. That’s what I do. I added gold a couple years ago as a hedge. So far so good. I have been listening to long form podcasts, some of which are casting doubt on set it and forget it 60/40 portfolios. To avoid that would require more active management, which is not really the FIRE standard approach. It’s never a bad idea to learn about the different ideas, models, and risk management approaches and talk to professional advisors. Adam Taggart’s Thoughtful Money show on YouTube, and MacroVoices both have great in depth interviews with economists, money managers, and advisors from across the spectrum. They are not sales pitches. Good stuff.
Subject Expert
Rising rates, and falling bond prices mean they are an even better hedge now.
They seem reasonably well placed to hedge equities.
Subject Expert
Now, when 10 year treasuries were at .5% and 30 years were at 1%, that was when bonds were shitty. :)
Crypto (just kidding)
Read about either the golden butterfly or the weird portfolio, not endorsing either but are good looks at heading different situations.
Portfoliocharts.com has write ups on a variety of portfolio mixes
Gold? 😂
Treasuries I guess? I’m just holding in S&P and praying
I agree that bonds may not always provide the same level of protection in an environment of rising interest rates or inflation. In my view, diversification remains a better way to manage capital and reduce risk. For the "safe" portion of a portfolio, I would consider allocating to cash, gold, and cryptocurrencies, and, depending on investment horizon and liquidity needs, some gold or other defensive assets
TBF and PFIX have been good hedges in the past few years rising interest rate environment.
Subject Expert
I don't think that market timing leveraged short funds would make me feel better or sleep well.
And I don't think we have any reason to think it would make the OP feel better or sleep well either.
Or help them achieve their financial objectives.