I recently cashed out a large portion of my home equity to increase my pace of investing. I decided to hedge my tech heavy portfolio with bonds (US LTT and US LT TIPS). I also decided to add more bonds with every paycheque to slightly reduce the correlation of my portfolio with the Nasdaq. Unfortunately, that backfired spectacularly and I'm seeing near six figure losses YTD as bonds and stocks became heavily correlated, which I found strange considering that just about anyone on even Reddit, let alone professionals knew that the Fed was going to greatly increase interest rates in 2022. In addition, I figured that the US bond market would be a flight to safety that is sheltered heavily against the war in Ukraine.
For those of you heavy in bonds, are you still adding with each paycheque/rebalance, or are you sitting this one out?
Submitted March 15, 2022 at 08:28AM by shimszy https://ift.tt/LQKj8b4
