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Vanguard Total Bond Market ETF Message Board

  • leoislion75 leoislion75 Aug 12, 2011 6:51 PM Flag

    BND -> Should certainly sell some

    definitely not add.

    high-grade bond in general is very very over-valued.

    should sell some and purchase Europe or U.S. general market stock.

    that would be wise asset allocation.

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    • Volatility are different, but related. I like VIG over SPY. Sold all my SPY before it bottomed, replacing it with VIG. BND has been performing well through the recent volatility as of late regardless of yield.

    • Volatility & Risk are two different things.

      1)BND -> less
      2)SPY -> more

      1)BND&SPY -> none

      Tactical Asset Allocation is for the PURPOSE of "better" investment return over-time

      at least that's for me =)

      -->I guess volatility is your primary concern (volatility doesn't concern me 0.1% at all)

      Next 20-years:

      1)BND (bought at recent high) would yield max 5%
      2)SPY (bought at recent low) would yield AT LEAST 8%.

      fairly obvious to me which allocates much more

    • It all depends on how you want to balance your portfolio. With all the volatility, it is a good idea to keep a chunk of BND along with high dividend paying stocks. I own a lot of BND, and more stocks, so I am happy when BND goes down because usually my stocks are up and I make more money. BND is a great counterbalance to owning stocks. Better and less volatile than GLD over time.

    • If this is the bottom of the S&P, you are right. But unless you have a crystal ball, you cannot call this a bottom. BND is stable and will be for some time to come. You cannot say the same thing about the Dow or S&P.

      • 1 Reply to jingleballer
      • I don't need to know if that was the bottom or not.

        Over the next 10 year period, there is 0% of chance a bond general market will beat equity general market.

        It's very obvious!

        A)General Bond yield is about 2-3%

        B)General Earning Yield is about 8%

        A stays the same (as of like now)

        B's Price stays the same

        --->Which one will fare better over the long-term? (it's obvious B can also INCREASE earning over-time)

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