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I am sure there is has been a lot of evaluating of investment choices, but if you were to start fresh with this new knowledge, what would your fund choices be for both your growth and income side of your portfolio be regardless of your percentages? As some have suggested, you are building own allocation fund. Or would you just use a PRWCX VWINX?
Is this a trick question? Just asking.
The answer (for those still in school) is Nothing.
There is no way you can react or adjust to an unknown unknowable. This is the penultimate black swan event. The only way to deal with it is to be properly allocated with reasonable goals and objectives - at all times.
and so it goes,
Peace and Flatten the Curve.
I've had a large cash pile for years sitting next to my equity-centric portfolios, so I'm VERY happy to be putting it all to work into equities now that they're coming down so sharply. Some of the stuff I just bought is down 10-15% already but I'm not worrying since they're solid (and mostly) 'value' companies.
Here’s from one pundit I follow:
“... other than to say there's going to be massive stimulus coming and we're going to have a lot of pain, it's very hard for me to come up with any kind of cogent plan for the near term that I would have any confidence in.”
Bill Fleckenstein, March 17, 2020 https://www.fleckensteincapital.com/dailyrap.aspx?rapdate=03-17-2020 (subscription required)
I’ve never held more than 20% cash. Just 15% going into this. A lot of that has already been put to work. But still have another 50% residing in global bond funds and alternative funds. Those have lost only a few percent compared to equities and may end up being deployed in coming months should the markets fall another 10-50%. I don’t think it will fall another 50% - just saying I’d still have some remaining funds to (heave, throw, pitch) at it if it should.
If I were to look back in hind-sight, I made a mistake early in January and February putting cash to work in bond funds as my CDs were maturing. I saw MM and CD rates going down and thought I could make more return, with slightly more risk, by buying fixed income funds. Munis in particular. I think I was swayed by the 2 extensive bond threads that everyone was commenting on. But that's my bad.
In any case, I now admit that was a mistake to add risk when I didn't really need to. Greedy.