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No. of Recommendations: 1
Could you please explain what you mean by your statement, "one can never be sure there will be a SCV premium during my investing life span"?

Those folks that analyze this stuff have gone back for 75 years or so and have determined that SCV stocks have an expected return greater than the whole market. OTOH there have been periods of several years where the expected return did not exist. Remember that along with greater expected return comes with greater risk. Since I am a "senior" I think there is a pretty good chance that the SCV premium will not materialize in the next 10 years or so. Therefore I am considering passing up on the "expected" premium return to keep the market return.

My prior reply addressed your equity portfolio only, but, since the subject of bonds have been raised, I am of the opinion that any investor with over $10K invested or over the age of 30 should have some exposure to bonds. Jack Bogle (and others) suggests that having your age as a percentage in bonds is a good starting point for an allocation. I guess that I am a bit more agressive than that and suggest that you should consider having 20-30% in bonds.

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