I think the All Weather would be stronger if half the long duration bond allocation were switched to liquid alts like trend following ETFs. I think all-weather will beat 60/40 over the next decade, with less volatility.
Personally, I don't mirror the All Weather too closely, but over the last 24 months I've moved closer to it than away from it because, as you say, potentially less volatility.
haha I love that AMZN story. We all have those stories, and they teach us a lot! Part of the investment plan as a passive investor is to understand you need to let those passive positions work over much longer periods of time. As the old saying goes, compounding is the 8th wonder of the world!
Haha. I know! I mean, it was an early lesson and it made me learn the hard way 😅 but very valuable. Though have to try and stop myself from doing that thing every couple of months - “how much would it have been worth now if I’d held?”
Agreed - I’m a big fan of set and forget for most of my investments.
In recent years, for sure. Though if there was a shock to let’s say tech, where there’s a heavy weighting in a lot of the funds. Then it’s a bit more exposed.
I think the All Weather would be stronger if half the long duration bond allocation were switched to liquid alts like trend following ETFs. I think all-weather will beat 60/40 over the next decade, with less volatility.
Personally, I don't mirror the All Weather too closely, but over the last 24 months I've moved closer to it than away from it because, as you say, potentially less volatility.
haha I love that AMZN story. We all have those stories, and they teach us a lot! Part of the investment plan as a passive investor is to understand you need to let those passive positions work over much longer periods of time. As the old saying goes, compounding is the 8th wonder of the world!
Haha. I know! I mean, it was an early lesson and it made me learn the hard way 😅 but very valuable. Though have to try and stop myself from doing that thing every couple of months - “how much would it have been worth now if I’d held?”
Agreed - I’m a big fan of set and forget for most of my investments.
Thanks! It seems that the Three-fund portfolio is a better choice since it has less significant downturns.
In recent years, for sure. Though if there was a shock to let’s say tech, where there’s a heavy weighting in a lot of the funds. Then it’s a bit more exposed.