A bond's price moves inversely to its yield. So if the yield is extremely low, there's a low ceiling to how high the value of the bond can get. So, the low-yielding bonds are a bad hedge for stocks, because the bond price can only get so high? When stock prices would crash, where would investors th...

So suppose I keep the usual 25% in my portfolio. I live in The Netherlands, so I buy the following, because that's the bond with the longest maturity date that my broker offers. NL0000102234 NL 4.00% 2037/01/15 From what I understand, I now run the interest rate risk. This is clear and acceptable to...

dualstow wrote:I loved your post!

Amen.

LTT interest rate risk is hedged most directly by the T-BILLS portion of the PP. OK, I have to let this sink in for a bit. For some reason, to me the bonds part turns out to be the most difficult to comprehend. Did not expect this! I've decided that I just need to start playing with this. So I plac...

Similarly for cash I would use Dutch short term bills/bonds. Rates are negative -0.6% but that is an insurance against bank failures. Apparently the market thinks this risk is high. Physical gold storage costs more than that. Thanks for this tip, and the rest of the comment. For some reason, my bro...

Your rational, logical, legitimate fear of long-term European sovereign debt instruments isn't actually a fear about BONDS the fear that you are expressing in your posts does not strike me as the fear of someone who is merely afraid that LTT will be a losing asset (you seem to accept that this is h...

From the context, it seems to me that Craig was concerned about interest rate risk related to the duration of the bonds, rather than about their Euro origin. Thanks for pointing that out. So I did some reading elsewhere, and re-read the topic where Craig and MachineGhost were commenting. And it see...

Just a quick note; reading through the comments, I realized I'm missing some fundamentals here. I'm going to do some reading before replying, but just wanted to pop in and say I'm very grateful for the responses!

If it wasn't LTT that you were worrying about, it would be one of the other core PP asset classes. I have no problem buying gold when its price is going down. After all, it's part of the plan. I do have severe doubts when Craig says that he wouldn't buy European bonds. Now you may simply say: no ma...

tarentola wrote:For comparison, my own Euro PP results over the last four years:

So what do you use for the bonds part?

I'd just go with something simple like 40% IEGA But how does that fix my (and other people's) worries about the low yield of long-bonds and its associated risks? What happens to this allocation if the euro appreciates for example a 20% to the level where it was just 3 years ago? 3 of the 4 assets h...

Some good points about the Euro PP history -- however the question remains: should I get into bonds at this point. The topic from October 2016 had a general consensus that I shoudn't, and that sentiment is repeated here. So, I've been re-reading that older topic, and here is a possible alternative: ...