3 ms·

You clearly did not read the article and you also showed your ignorance of the market. The article talks about broad market issues, not index vs active. This y

by MR4D 3y ago

You clearly did not read the article and you also showed your ignorance of the market. The article talks about broad market issues, not index vs active. This year is shaping up to be historic. As in capital-H historic. Treasuries have never been down 3 years in a row since the 1700’s. [0] Finally, you can very easily create a 60/40 portfolio using index funds. SPY & AGG are 2 common ETFs used, while VFINX & VBMFX are two common index mutual funds used. [0] - https://markets.businessinsider.com/news/bonds/chart-of-the-day-us-treasurys-1787-longest-stretch-losses-2023-9 https://markets.businessinsider.com/news/bonds/chart-of-the-...

Eridrus 3y ago
The article does seem to be punching a straw man though. A 60/40 portfolio is basically only recommended for those approaching retirement who cannot stomach high volatility. Target date funds that are commonly used would put 30 year olds into a 90/10 portfolio.
- MR4D 3y ago
  I'd wager that most retired Boomers have 60/40 (or even more conservative) allocations. I agree about the 30 years olds, but people aged 40+ have a higher ratio where they actually see the impacts of this.
readthenotes1 3y ago
"Treasuries have never been down 3 years in a row since the 1700’s. [0]" That just means that Treasury interest rates have not risen this much (proportionately) 3 years in a row since the 1700s, and we can blame that squarely on ZIRP. During ZIRP, 60/40 was a ludicrous asset mix and obviously to be avoided.
- MR4D 3y ago
  Agreed - ZIRP for a decade is causing problems. I think his article would have been better if he focused on that more and how changes away from ZIRP will impact investors. Instead he danced around it a bit. I would have preferred a head-on approach. One thing I would say is that tons of people have target date funds and were/are still in a higher bond mix than they should have been. But investing is tricky and most investors don't do the right thing all the time.
dang 3y ago
Please don't break the site guidelines like this. You broke several of them here, including: "Edit out swipes." and "Please don't comment on whether someone read an article. "Did you even read the article? It mentions that" can be shortened to "The article mentions that."" If you'd please review https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html and stick to the rules when posting here, we'd appreciate it.

by MR4D 3y ago

Eridrus 3y ago

The article does seem to be punching a straw man though. A 60/40 portfolio is basically only recommended for those approaching retirement who cannot stomach high volatility. Target date funds that are commonly used would put 30 year olds into a 90/10 portfolio.

MR4D 3y ago
I'd wager that most retired Boomers have 60/40 (or even more conservative) allocations. I agree about the 30 years olds, but people aged 40+ have a higher ratio where they actually see the impacts of this.

readthenotes1 3y ago

"Treasuries have never been down 3 years in a row since the 1700’s. [0]" That just means that Treasury interest rates have not risen this much (proportionately) 3 years in a row since the 1700s, and we can blame that squarely on ZIRP. During ZIRP, 60/40 was a ludicrous asset mix and obviously to be avoided.

MR4D 3y ago
Agreed - ZIRP for a decade is causing problems. I think his article would have been better if he focused on that more and how changes away from ZIRP will impact investors. Instead he danced around it a bit. I would have preferred a head-on approach. One thing I would say is that tons of people have target date funds and were/are still in a higher bond mix than they should have been. But investing is tricky and most investors don't do the right thing all the time.

dang 3y ago

Please don't break the site guidelines like this. You broke several of them here, including: "Edit out swipes." and "Please don't comment on whether someone read an article. "Did you even read the article? It mentions that" can be shortened to "The article mentions that."" If you'd please review https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html and stick to the rules when posting here, we'd appreciate it.