Portfolio sanity check

short_butt_sweet

Linton wrote: »

1) In the past long term down turns have generally affected individual markets or geographies. Now sensible people can and do invest globally. With a 20 year period of global economic collapse what non equity investments would be safe?

in the worst case, nothing will be completely safe. we could see poor returns from both equities and bonds. but a mixture of equities and investment-grade bonds will be safer than 100% equities. because that way, you are spreading your bets.

2) Since the OP is seemingly planning to be contributing steadily over the very long term rather than investing a lump sum now the risks are much reduced since a significant part of the purchases could be at the reduced price. Price crashes in the next say 10 years could be to his advantage. Once the OP has amassed a significant sum and gets within perhaps 10 years of needing the money reducing the equity % would make more sense.

you make the case well for increasing the % of bonds in later years. so if the OP wants to start with 15%, perhaps they should increase that later on.