Ok, I’ve just finished The Intelligent Investor for the first time. I’ve been trying to figure out what to do with investing as Graham defines it (as opposed to speculating) and the current situation with bond yields with his advice that you should keep at least 25% allocated because of the potential for things to change in the future.
I’ve also been a fan of Ray Dalio’s advice, and recently read his post on avoiding bonds altogether.(https://www.linkedin.com/pulse/why-world-would-you-own-bonds-when-ray-dalio)
These two thought streams are seemingly at odds, and the best I can come up with is that Graham’s advice didn’t take into account such low bond yields ever existing, and I’m probably better off following Dalio’s advice:
“ I believe a well-diversified portfolio of non-debt and non-dollar assets along with a short cash position is preferable to a traditional stock/bond mix that is heavily skewed to US dollars. I also believe that assets in the mature developed reserve currency countries will underperform the Asian (including Chinese) emerging countries’ markets. I also believe that one should be mindful of tax changes and the possibility of capital controls.”
I’ve gotten rid of bond ETFs completely from my portfolio, and now have some gold, emerging Asia markets, commodities, foreign value ETFs to replace them.
I’d love to hear all of your thoughts on both reconciling Graham’s investment approach with current bond yields and on Dalio’s thoughts. What do you think?
Submitted April 21, 2021 at 11:36PM by Byuceltic https://ift.tt/3vfbhQ9
