ARCHIVED
 Markypie
Dark Lord of the cookie supply
Team Member
Joined: Apr 2006  TX, USA
 Posts: 1319 Feedback: 100% (44) |
Posted: 7/10/2012 9:25:51 PM
THE IMAGE ABOVE IS A PAID ADVERTISEMENT Investment Funds Shares Share Price Balance Distribution of Account Contribution Allocation Individual Funds G Fund Government Securities 12,017.2685 $13.9335 $167,442.61 68.78% 70.0% F Fund Fixed Income Index 4,801.4984 $15.8283 $75,999.56 31.22% 30.0% View your 12-Month Personal Investment Performance (PIP) Your Personal Investment Performance (PIP) for the past 12 months ending 06/30/2012 is 3.51%. (Your PIP is posted by the 3rd business day of each month.) |
|
|
|
Posted: 7/10/2012 10:45:07 PM
i'm no expert but aren't bonds a crazy bad buy right now?
|
|
|
|
Markypie
Dark Lord of the cookie supply
Team Member
Joined: Apr 2006 TX, USA
Posts: 1320 Feedback: 100% (44) Link To This Post |
Posted: 7/10/2012 11:10:18 PM
[Last Edit: 7/10/2012 11:12:45 PM by Markypie]
I went to the government security (G) fund 70% and Bond Market (F) fund 30% when stocks went South in 2008. I have not lost any money since then.
|
|
|
woodsie
Member
Team Member
Joined: Nov 2008 MI, USA
Posts: 6808 Feedback: 100% (1) Link To This Post |
Posted: 7/10/2012 11:43:50 PM
Originally Posted By Markypie:
I went to the government security (G) fund 70% and Bond Market (F) fund 30% when stocks went South in 2008. I have not lost any money since then. Bonds will absolutely get slaughtered if the economy stages any kind of significant recovery and money starts moving back into stocks. Remember looking back how much we all wish we sold at the height of the tech bubble back in '00? Well, here we are potentially on the verge of a bond bubble scenario. Now is your chance. History predictably repeats as people rush from one hot spot to another. First it was tech, then it was real estate, now it is perhaps bonds and precious metals as the investing hordes seek safety. Just my best guess, YMMV. |
|
|
|
Markypie
Dark Lord of the cookie supply
Team Member
Joined: Apr 2006 TX, USA
Posts: 1321 Feedback: 100% (44) Link To This Post |
Posted: 7/11/2012 1:54:57 AM
Originally Posted By woodsie:
Originally Posted By Markypie:
I went to the government security (G) fund 70% and Bond Market (F) fund 30% when stocks went South in 2008. I have not lost any money since then. Bonds will absolutely get slaughtered if the economy stages any kind of significant recovery and money starts moving back into stocks. So we're good until at least November, right?  |
|
|
graysonp
Member
Team Member
Joined: Oct 2008 KY, USA
Posts: 3603 Feedback: 100% (49) Link To This Post |
Posted: 7/11/2012 10:51:38 AM
Originally Posted By woodsie:
Bonds will absolutely get slaughtered if the economy stages any kind of significant recovery and money starts moving back into stocks. Remember looking back how much we all wish we sold at the height of the tech bubble back in '00? Well, here we are potentially on the verge of a bond bubble scenario. Now is your chance. History predictably repeats as people rush from one hot spot to another. First it was tech, then it was real estate, now it is perhaps bonds and precious metals as the investing hordes seek safety. Just my best guess, YMMV. I agree with this 100%. I'm not putting my money into bonds right now. There's nowhere for bond funds to go but down when interest rates start to rise. OP, I know it feels good to know that you haven't lost any money since 2008, but you have to remember that market volatility is only temporary. The US stock market has returned about 70% since it's bottom in 2009, and you missed out on those returns. Don't let emotions make your decisions for you, simply because bonds or government securities "feel" safer. You're leaving a lot of money on the table. Find an asset allocation that matches your needs and stick to it. Don't try to time the market and move your money around because of what you're afraid might happen in the future. |
|
|
|
woodsie
Member
Team Member
Joined: Nov 2008 MI, USA
Posts: 6817 Feedback: 100% (1) Link To This Post |
Posted: 7/11/2012 12:59:30 PM
Originally Posted By Markypie:
Originally Posted By woodsie:
Originally Posted By Markypie:
I went to the government security (G) fund 70% and Bond Market (F) fund 30% when stocks went South in 2008. I have not lost any money since then. Bonds will absolutely get slaughtered if the economy stages any kind of significant recovery and money starts moving back into stocks. So we're good until at least November, right? Pretty much. 
Sometime after though, I think we come to a turning point for better or worse. Everyone knows the doomsday scenarios which are certainly well within the realm of possibility but very few recognize the boom scenarios which are brewing right now. Two key things I'm seeing are: 1) Companies have accumulated tremendous stock piles of cash. 2) Individual debt loads have been dropping for the past few years since the crash. Those two indicators right there tell me that with the right spark, perhaps a business friendly government, there is a huge amount of demand that could be unleashed on to the market giving us yet another decade of 80's/90's style growth after the past decade of relative stagnation. |
|
|
|
|
Posted: 7/11/2012 2:23:44 PM
I'm 16 months away from mandatory retirement. Should I go heavier in the bond (F) fund?
I'll see your raise, and push you all in to the G. I went to the government security (G) fund 70% and Bond Market (F) fund 30% when stocks went South in 2008. I have not lost any money since then.
smart money always say to be aggressive while young, and more conservative at the end for stability. You know that you dodged a big bullet the last time because the G is stable, should never go down, better investment than TIPS, and is backed by the US Government
G Fund performance F Fund performance put it into the G, collect ~2.5% don't worry barring catastrophic events - you will not loose |
|
|
ARCHIVED
