Life beyond bonds
Posted: February 17th, 2021, 3:25 pm
Hi All,
Last year I set-up my gone fishing portfolio based on some of the widely used approaches and like many I took a fairly standard formulaic approach with a global developed/developing small/large company and government bonds making up my portfolio. As I look at my portfolio performance Bonds seem to be a little disinteresting to me and it has me questioning why I want them in my portfolio at this point in my life.
My research shows that bonds usually form a portfolio because:
Now, I am 25+ years from retirement - so stability is less important to me right now; and it seems like the huge influx of investors wanting the 'safety' of bonds has significantly reduced the ROI of owning bonds. So my query is, as someone looking to increase value and accumulate, rather than needing the safety of bond based income, should I really be concerned about having bonds in my portfolio?
The diversification point above is still valid for me; but I was thinking about diversifying in a different way.....lets say commodities. That could be sticking with the trusty Gold and Silver type ETC's or maybe livening things up a little by looking at some of the industrial commodities such as copper, nickel etc. What are you thoughts and ideas?
Thanks for your help.
Jon
Last year I set-up my gone fishing portfolio based on some of the widely used approaches and like many I took a fairly standard formulaic approach with a global developed/developing small/large company and government bonds making up my portfolio. As I look at my portfolio performance Bonds seem to be a little disinteresting to me and it has me questioning why I want them in my portfolio at this point in my life.
My research shows that bonds usually form a portfolio because:
- - They are stable and fluctuate less in price
- - They have more stable income
- - They offer diversification vs stocks
Now, I am 25+ years from retirement - so stability is less important to me right now; and it seems like the huge influx of investors wanting the 'safety' of bonds has significantly reduced the ROI of owning bonds. So my query is, as someone looking to increase value and accumulate, rather than needing the safety of bond based income, should I really be concerned about having bonds in my portfolio?
The diversification point above is still valid for me; but I was thinking about diversifying in a different way.....lets say commodities. That could be sticking with the trusty Gold and Silver type ETC's or maybe livening things up a little by looking at some of the industrial commodities such as copper, nickel etc. What are you thoughts and ideas?
Thanks for your help.
Jon