Not because it provides stability (10% bonds doesn't provide much cushion at all) but because there's an option to sell your bonds to buy equities if we go into a recession.
I guess it's equivalent to holding 10% of your portfolio in cash as a "dry powder" but it's still nice to know that you have everything invested.
I have decided to set 10% of my portfolio in bonds and sell them to go 100% into equities if there's a 20% SPY drop from the ATH. If not, I will just keep it this way forever.
It puts me more at ease knowing that I can take advantage of the next "dip" if it happens.
Submitted March 22, 2019 at 09:22PM by BuySPY https://ift.tt/2HEXkGm
