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How To Catch The Market's Upside With A Downside Cushion
I'd love to know what will work going forward that worked as well as LT Treasuries had in the past to cushion a portfolio when the next stock market downturns hits:
Here's how EDV has yinged when VTSMX has yanged over that last 6 years (since Sept of 2007):
My impression that bond funds may present a cushion in rising interest rate environment too. The fact that nobody sees a better alternative indicates that big money will still use bonds to protect their portfolio.
Comments
Here's how EDV has yinged when VTSMX has yanged over that last 6 years (since Sept of 2007):
http://www.bogleheads.org/forum/viewtopic.php?f=10&t=85803
when 10 Y Treasury rate went up from 2 to 14%.
http://www.multpl.com/interest-rate/
My impression that bond funds may present a cushion in rising interest rate environment too. The fact that nobody sees a better alternative indicates that big money will still use bonds to protect their portfolio.
http://seekingalpha.com/article/1501662-phdg-and-vqt-positive-returns-in-bull-and-bear-markets
Kevin