No. of Recommendations: 0
Does anyone know of any quantitative way to make this decision?

You might look at some of the bond yields or how far above or below they're trading relative to par value, some treasuries are at near historic lows, which would suggest that the capital appreciation has done at it can do.

My inclination would be to take your profits and maybe go 50% cash/ 50% cheap stocks with a maximum of 25% stock. You'd get the security of money market for 1/2 of the money (although the return is about 3%) and have a hedge against the bonds getting clobbered if/when people leave bonds for stocks.

You might consider a very small portion of the money in high yields, their spreads to treasury are enough (in my eyes anyways) to justify taking on some of the that credit risk. I have about 5% in high yields in a fund atm.

- FjordReject

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.