>> Many do this simply to reduce their volatility. 15% in bond won't hurt her too bad and should give her some significant downside protection when the markets do make those 10%+ corrections. <<Agreed. Many people (myself included) hold a little bit in bonds and cash despite having a long enough time horizon where they don't make sense, if for no other reason than it makes it emotionally easier to stay the course when the market hits an air pocket.No allocation is of any use if it leads to emotional decisions to buy high and sell low, so if moderating the volatility a bit makes it easier for people to stay in, then so be it.#29
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra