September 7, 2001Vanguard 500 Index (VFINX) YTD total return –17.12% .12 month total return -26.92%.Vanguard GNMA (VFIIX)YTD total return 6.80%.12 month total return 11.43%.Vanguard Total Bond Mkt Index Inst (VBTIX)YTD total return 7.71%. 12 month total return 12.58%.Vanguard Short-Term Bond Index (VBISX)YTD total return 7.25%.12 month total return 11.12%.
In other words, the easy money has already been made.#29
In other words, the easy money has already been made.It could also mean that one shouldn't place all of one's nest egg in one basket, but rather be diversified among baskets in some sensible manner.The best performing fund in my portfolio for the past 15 or so months turns out to be the one fund that I thought, yes, sure, I'll hold this fund but I expect it to be the biggest laggard, but instead it turned out to be the powerhouse of my portfolio during that time: a lowly, very conservative fund, comparatively speaking--a short-term government bond fund. Hmm, not exactly my plan, but it saved me from a bigger loss. 8)
Depends on how things go from here. Could be more for bonds on the up side and more for stocks on the down side. Possible 40% divergance if things get really ugly.