#6040-portfolio

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#etf-allocation #bond-yields #rebalancing #sp-500-comparison #bond-diversification #interest-rate-risk
Retirement
from24/7 Wall St.
4 days ago

AOR's 60/40 Allocation Has Lagged a Simple S&P 500 by 60 Points Over a Decade, And Built In Rebalancing Did Not Help

AOR’s 60/40 allocation and internal rebalancing reduced returns versus a pure S&P 500 during a decade when equities outperformed bonds.
from24/7 Wall St.
1 week ago

Bonds Used to Be the Answer for Retirees Who Needed Income. Then Came the Covered-Call ETF That Pays 4.75%.

Bonds worked really well as a portfolio diversifier for more than four decades, and a huge part of that success came from the long-term trend of falling interest rates. When interest rates fall, the value of existing bonds rises because their fixed coupon payments become more attractive relative to newly issued bonds. That dynamic created a tailwind for bond investors over time.
Business
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