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by throw0101c 13 days ago
> Are we in a race to see who can pop the bubble first?

Just because it's a bubble doesn't mean money can't be made.

If you're worried it and the risk involved, perhaps go from 100% equities (100/0) to an allocation that has some bonds (90/10, 80/20, etc). Rebalance as things get out of whack.

There are products that do this rebalancing for you: target-date funds that increase bond allocation as you get closer to retirement, or fixed-allocation all-in-one funds (VASGX, VSMGX; CA: VEQT/XEQT).

Having some bonds and rebalancing would have saved US domestic investors in the so-called Lost Decade of the '00s:

* https://www.forbes.com/sites/advisor/2010/09/13/its-not-real...
1 comments
amanaplanacanal 13 days ago
If we are still likely to see rising interest rates, bonds feel like a bad idea.
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throw0101c 13 days ago
> If we are still likely to see rising interest rates, bonds feel like a bad idea.

Bonds are a bad idea until they're not… at which point it may be too late to buy them.

And you (generally) don't buy bonds for returns (at least not since the '80s). If you can sleep at night with the gyrations of The Marketâ„¢ then go ahead and skip them, but also keep your timelines in mind (are you hoping to retire in 5-10 years, or make some other use of the money (downpayment)?).

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