What do you think of my asset allocation ...?

valiant24

Thrugelmir said:

  Not possible to enjoy both the benefits of higher equity prices and a decent return on fixed interest stocks. 

What I am currently enjoying is a 5% loss in capital value over the past three months in both my equities and bonds :-(

Thrugelmir

valiant24 said:

Thrugelmir said:

  Not possible to enjoy both the benefits of higher equity prices and a decent return on fixed interest stocks. 

What I am currently enjoying is a 5% loss in capital value over the past three months in both my equities and bonds :-(

And you gain over the past 120 months or so? 

valiant24

Thrugelmir said:

valiant24 said:

Thrugelmir said:

  Not possible to enjoy both the benefits of higher equity prices and a decent return on fixed interest stocks. 

What I am currently enjoying is a 5% loss in capital value over the past three months in both my equities and bonds :-(

And you gain over the past 120 months or so? 

The gains have been great on equities :-:smile:
I hadn't ever owned Bonds before Sep last year.  I wish I'd never heard of them :-(

Alexland

MaxiRobriguez said:

Undoubtedly the next few years are going to be hard to navigate for everyone, but any recent retiree who planned sensibly should be navigating it with a huge margin of safety, because the gains in the last decade have outpaced any reasonable long term plans by a large degree.

The problem will be if people have retired with only enough assets that they require an average rate of return going forwards which might not happen given underlying valuations. When assessing if you have accumulated enough money to retire how many people consider the likely rate of future returns if revision to the mean occurs? Or do they just go with a '4% safe withdrawal rate' without realising that their chosen years to start retirement may be running a higher sequence of return risk?

Thrugelmir

Alexland said:

MaxiRobriguez said:

Undoubtedly the next few years are going to be hard to navigate for everyone, but any recent retiree who planned sensibly should be navigating it with a huge margin of safety, because the gains in the last decade have outpaced any reasonable long term plans by a large degree.

The problem will be if people have retired with only enough assets that they require an average rate of return going forwards which might not happen given underlying valuations.

Would be foolish to assume that after a period of exceptional returns. That future returns will be average. Reversion to the mean dictates a period of lower returns. To maintain the historic long term averages. Company financial performance ultimately reflects global growth.