It's funnier to see the Crypto people lose -90% of their net worth and still come back to make fun of the "portfolio people"Funny to see how the advocates of the modern portfolio theory try to handle fixed income allocation now
You didn’t get my point.
Only if you will be able to time bond bottom in rising interest rates environment once FED kills inflation then is good buy bonds beacouse rates will be lower in future. Inflation will eat your "bond" and buying power. Is hard to tame inflation when inflation is 9% in US while rates 2%.Is it Good Idea???
It's great that you're "cool" with being down -90%, I thought we're comparing portfolios though and not the ability to withstand pain.
that’s not what they are supposed to do according to the modern portfolio theory. Firstly, the sigma adjusted performance is equal to those of stocks. Secondly, the fixed income that they are supposed to generate is effectively a fixed loss being lower than inflation. QE has fucked all up, we probably need a new portfolio theory.So even in these incredibly bad times for bonds, global bonds still did what they supposed to do - be the defensive part of the portfolio.
For once, I agree with you. The 60/40 stock and bond portfolio is dead, at least until capitalism returns and the governments of the world end their mad experiment with the financial repression of artificially low interest rates that skew market forces. Unfortunately, that will occur only after great pain, when those governments have no other choice but to capitulate to free market forces -- as they eventually must.QE has fucked all up, we probably need a new portfolio theory.