To reduce volatility by 25%, one can use a 75/0/25 portfolio (stocks/bonds/cash).

Thank you. Will explore further with this interesting idea.

https://www.sec.gov/Archives/edgar/data/894240/000089418921001399/monetta497e.htm
497 1 monetta497e.htm MONETTA 497E
Filed pursuant to Rule 497(e)
Registration Nos. 033-54822; 811-07360
MONETTA YOUNG INVESTOR GROWTH FUND (MYIFX)
(formerly known as Monetta Core Growth Fund)
a series of Monetta Trust
March 5, 2021
Supplement to the
Summary Prospectus, Prospectus, and
Statement of Additional Information (“SAI”),
each dated April 30, 2020
_____________________________________________________________________________________
Effective April 30, 2021, the name of the “Monetta Core Growth Fund” will change to the “Monetta Young Investor Growth Fund”.
There are no changes being made to the investment objective, policies, or strategies of the Fund, and the current portfolio managers will continue to manage the Fund subject to the Fund’s current investment objective, policies, and strategies.
All references in the Summary Prospectus, Prospectus, and SAI to “Monetta Core Growth Fund” are hereby replaced with “Monetta Young Investor Growth Fund”.
Please retain this Supplement for future reference.

I see little value of holding gold in this environment. Perhaps gold miners maybe use for trading purpose. I share the opinion with Warren Buffet on gold.

It can be the most wonderful - and also most awful - holding among one’s investments. I’ve slowly bought down in recent months in my one mining fund (OPGSX). It now amounts to 2.5% of total investments, dwarfed by most everything else. Yet, on a daily basis it is often the biggest determiner of how the day went. IMHO - it’s about as close to gambling as one can get with their investments. I could never recommend it to anyone - though in physical form I think some of the bullion coins lovely (keeping in mind that beauty is in the eyes of the beholder).
Been looking at site with a lot of gold bugs. Many went “all in” a year ago. Some weeping in their brew today.

Intimately related to the question of what is a bond fund is why own bonds or a bond fund in the first place? A reason often given is to reduce overall portfolio volatility, i.e. to zig when stocks are zagging. The mention of Sharpe ratio (based on volatility) suggests that volatility is indeed a major consideration.
If one is diversifying into bonds to control a portfolio's overall volatility, then HY isn't a great way to do it.

High yield bonds, also known as “junk” bonds, have always had an identity crisis. They show up in our portfolio reviews under the category of “bonds,” but in reality, they move more closely with the stock market than the bond market. ...
High-yield bonds historically have a correlation of .71 with stocks, and a correlation of .17 with traditional bonds, meaning they move much more closely with stocks than bonds.

Forbes (2018), The Most Confused Identity In Your Portfolio: High Yield Bonds
If the intended use is simply to tamp down the volatility (reduce beta, serve as deadweight aka "ballast") of a stock-like investment, then investing in HY bonds in lieu of equities may serve that purpose. (This was implied by comparing FAGIX with VTI.) Alternatively one could dial down the equity volatility explicitly and precisely by adding cash. To reduce volatility by 25%, one can use a 75/0/25 portfolio (stocks/bonds/cash).
BTW, M* reports only five share classes of taxable bond funds with YTD returns of 0.97%. Three are not generally available to retail investors:
TCRRX - the institutional version of PRCPX
EGRIX - TF institutional share class available with retail mins
EGRSX - R6 share class of EGRIX available only through large retirement plans
ETSIX - A shares available load waived, NTF
FXIDX - One of Pimco's FISH "comingled vehicles"
Except for the TRP HY fund, these are all nontraditional bond funds. ETSIX at least seems worth a look.

Once again, you can't have a sensible discussion on this subject without defining what is meant by "bond fund." YTD my bond fund portfolio is up .97% compared to BND which is down 3.09%. Going back to 2002 FAGIX (which admittedly holds some stock but is considered a HY fund) had a CAGR of 10.64% with a sharpe of .87 while VTI had a CAGR of 10.75% and a Sharpe of .67%. Meanwhile SHY (sometimes used as a cash surrogate) had a CAGR of 2.06% and a sharpe of .66%. Some may sleep well at night with that cash, but likely will do so in the poor house. Just my opinion of course.

Technical analysis for gold futures - Can the bears be stopped?
https://www.kitco.com/news/2021-03-04/Technical-analysis-for-gold-futures-Can-the-bears-be-stopped.html
Technical analysis for gold futures - Can the bears be stopped?
**The daily gold chart is showing that the price is in a strong downtrend at the moment. All hope is not lost for gold bugs as there are some decent support levels close by. The red support level at $1676.60/oz was an important level in the past. It was here that in March 2020 the price hit some strong resistance and when it did finally break it was used as a support level before a subsequent move higher.**
Gold looks attractive again, resistant level maybe at < 1680 but who know may drop to < 1500 since we have bitcoin.

p/e plateau of like 45-50? do you think SP500 4300 would represent reasonable or even high-reasonable valuation?

I agree with this scenario. My wave analysis is pointing to the SPX at 4300 later this year. Perhaps as early as May. This is nothing more than a healthy to be expected correction. It has absolutely nothing to do with interest rates, as history has shown countless times that rates and stocks often rise in unison.
SPX 3550-3600 is my next buy zone.

So .. I think we can all agree without fed stimulus, handouts etc, we'd likely see another great depression. Might see one eventually after fed says no more. Where does this sheet show leave us?
Many think over next 10 years we'll be lucky to see 1% returns in stock market
Do you know of any 10year single A bonds that are paying over 2%?
Hide out there and in tbills, waiting for the cathie Wood tesla stock market crash
Timing market yes, but better than losing 25% in two weeks time
Posting for entertainment purposes only. Due your own due diligence
Good luck to all,
Baseball Fan

The choice between Bonds that yield next to nothing VS. Cash that also yields next to nothing is nauseating.
The only reason I can remember HY interest rate CDs is because I was born over 5 decades ago. The Fed and it's magic toolbox have painted themselves into a corner. Asset bubbles will have to deflate EVENTUALLY - you can't kick the can down the road forever. And STIMULUS is great for a short-term fix, but there should be a limit. Our country is not good with limits of any kind, though.
And letting markets play out naturally. We hate that idea, too.

Historically, stocks have returned not 1532;% but about 4% more than bonds (10% vs. 6%). So given today's interest rate differential between bonds and cash one expects a 75/0/25 portfolio to significantly outperform a 60/40/0 portfolio.
Things aren't quite this simple because we're looking at averages and when actual returns fluctuate and you're rebalancing, actual returns may differ somewhat. Still, it looks good for the stock/cash portfolio.

Thank you for doing the arithmetic.
Something to think about.

"21 July"? Dang furriners. What country's 1988 rates are you quoting? And whom are you quoting?
As to Clement's 2021 suggestion that one go for 75% stock/25% cash, his description seems fair. These days, one gives up about 1% in yield in going from bonds (1.4% 10 year T-bond) to cash (0.4% bank accounts). So, using cash instead of bonds in 25% of one's portfolio reduces one's return by 25% x 1% = 25 basis points.
In exchange, one boosts one's return on the 15% of the portfolio that one invests in stocks rather than in bonds (increasing the stock allocation from 60% to 75%). Should stocks over time return just 1532;% more than bonds, then one's return would be increased by 15% x 1532;%, i.e. 25 basis points. That is, the loss on the cash side would be made up on the stock side.
Historically, stocks have returned not 1532;% but about 4% more than bonds (10% vs. 6%). So given today's interest rate differential between bonds and cash one expects a 75/0/25 portfolio to significantly outperform a 60/40/0 portfolio.
Things aren't quite this simple because we're looking at averages and when actual returns fluctuate and you're rebalancing, actual returns may differ somewhat. Still, it looks good for the stock/cash portfolio.

Not wrong, just early. I’d say Bernstein was recommending a sort of barbell approach, 15% less in bonds & in very short term bonds, ie cash. I assume that is what Mr Galt is getting at.
I continue to hold bonds because *evidently* I am a pessimist. Well also because I am taking sufficient risk to meet my needs.

Latest on ARK . https://finance.yahoo.com/news/why-cathy-woods-once-hot-ark-innovation-etf-has-lost-all-its-2021-gains-185620392.html
Stay safe, Derf

@ Rbrt : take a look at the rates in '88 vs rates today.
"Rates hovered between 9 and 7.5 per cent for the first half of 1988, before breaching the two-figure mark on 21 July. By September, it was 12 per cent, and went up another percentage point in..."
Enjoy the weather, Derf
Please delete ! The old saying of haste makes waste applies here ! "Derf"

TMSRX is only 1% for now, but will likely grow to 5% - 8% as I get more comfortable with it and add more along the way. So far, so good.
That IQDAX story disturbs me, but hoping that's more of a "one-off" situation.

TMSRX 2%. Will go to 5% sooner or later.
Enjoy the weather, Derf

Here’s a good article that looks into this topic: https://humbledollar.com/2020/06/farewell-yield/
From the article:” That brings me to an idea advanced in 1989 by the late Peter Bernstein. Instead of the classic balanced portfolio with 60% stocks and 40% bonds, perhaps investors should opt for 75% stocks, with the other 25% in cash investments like money market funds and high-yield savings accounts. Bernstein found that the latter investment mix had a similar risk level to the classic balanced portfolio, but higher returns.”

Trimmed back to ~5% of total portfolio.
No doubt, T Rowe team tenacious and bright, solid reputation. I've seen Giroux and Sebastien Page, head of Global Multi Asset and Chair of Asset Allocation Committee on Wealthtrack. Intense, knowledgeable, rational, well spoken, nothing kooky about them (I just don't want any of my monies run by screwballs, eccentrics or kooky folks, go figure right, but believe me, you see them in all industries) It appears to me that they have a very collegial, professional and competitive environment at T Rowe Price, those folks play to win. Of course I don't work there and would not know, but based on the demeanor during the interviews I've seen, I believe that to be the case.
Still more than a bit concerned about the swaps and derivatives in TMSRX, what would really happen for some outlier event which seem to be happening almost on a regular occurring basis lately? I'd like to ramp up to 15% of portfolio but right now, chicken little, likely got stung in IQDAX.
Phasing into PMEFX (Penn Mutual AM 1847 Income) and FEVAX (First Eagle US Value), nibbling at ARTTX (Artisan Focus) on hard down days past couple weeks, fading VLSAX (Virtus Kar L/S) which has done really well for me up until the past few months where the shorts in re opening stocks have hurt and the high flyer tech stocks have been hit in the past few weeks
Good Luck to All, enjoy the improving weather,
Baseball Fan