It’s a 60% stock and 40% bond fund of funds from Vanguard. I like the diversity of it but I was thinking about the case of a downturn.
This was my original thinking: I would not be able to sell the bonds alone but would need to sell all of it together. This can be offset by basically exchanging the stock purchases for the same stocks and then using the bond money to buy new stocks.
But then I look into the history of the fund and the fund price more than halved during the last few recessions. Meaning buying into this fund would basically be like buying into any other stock during hard economic times.
Why is this happening? Shouldn’t the bonds be minimizing the stock drops?
Submitted April 19, 2019 at 09:52AM by Asccandreceive http://bit.ly/2IsUogp
