Re: DreamboatAnnie's Account Talk
Originally Posted by
DreamboatAnnie
Here are the current charts ... equities look good. Bonds are a stinker!
...
AGG (Bonds) are stinkers, but they will help buffer things when the S Fund corrects.
I don't pretend to know when the S Fund will correct, although it does seem a bit floaty right now. What I think I can say is that if it dumps 8% in a day, with a comparable dump in C and I, I will lose about 4% (because F will go up). I can bail deep into the following day or maybe even the next - which may allow me to see if it is correcting or free-falling. Don't get me wrong, in a normal market I will always have 60% - 80% in C/S/I. Bonds - and especially Social Security Bonds (G) - just kinda suck as a major holding in normal or aggressive markets.
Personally, I just wouldn't want to be letting it all hang out in the most variant of our funds. I had my account dump 8% in an afternoon (after IFT deadline - the morning looked good to go) in 2008 and dump another 8% before COB the next day - which is when my IFT took hold. Not happy with that. I was actually up +7% YTD one day in 2008 and down -11% the next. Not fun, not fun at all. With my current allocation those two crash days would have left me about even or a couple of points down YTD.
Lookin' up at the 'G Fund'!!!
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