October [censored] thread

ahnuld · #1 10-06-2007, 06:40 PM

ok but does it really make sense for that to be part of a long term asset allocation plan, such as 60% equities, 30% bonds, 10% cash?

DcifrThs · #2 10-06-2007, 06:52 PM

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ok but does it really make sense for that to be part of a long term asset allocation plan, such as 60% equities, 30% bonds, 10% cash?

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no. but that isn't what you asked [img]/images/graemlins/tongue.gif[/img]

Barron

ahnuld · #3 10-06-2007, 06:57 PM

oh, def. not what I asked, just my random thoughts after having to do some investment portfolio management reading and trying to find mistakes in the text

DcifrThs · #4 10-06-2007, 07:05 PM

[ QUOTE ]
oh, def. not what I asked, just my random thoughts after having to do some investment portfolio management reading and trying to find mistakes in the text

[/ QUOTE ]

to be fair, one reason to hold some cash is that it is negatively correlated with equities and bonds.

cash returns more when short term interest rates go up. an increase in S-T rates hurts both equities and bonds.

furhter, this return is absolutely not volatile at all relative to bonds and stocks.

Barron