UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: jbking Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35345  
Subject: Re: bond fund vs balanced fund??? Date: 11/21/2001 4:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
Greetings jrr7,

The point of a balanced fund is to buy bonds when they're cheap relative to stocks, and sell them when they're expensive relative to stocks.

No, this is the point of so-called "Asset Allocation funds" that use tactical asset allocation such as Vanguard's Asset Allocation fund(VAAPX) rather than those funds that seek a somewhat constant mix and try to be a fund that almost has everything in one for a given asset allocation as Vanguard's Balanced Index(VBINX) doesn't try to time the markets but just hold a mix of 60% stocks to 40% bonds.

JB
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Post of the Day:
Value Hounds

Medallion Financial: TAXI!
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement