Gyroscopic Investing

What do people think about a VTI/EDV portfolio.  50/50, with rebalancing bands of 25% and 75%?

It would be held in a Roth IRA with Vanguard, so there would be no taxes or trading fees.

what's your premise for market direction? with EDV being sometimes moving 1.5xTLT, this seems like you're expecting further declines in stock market?

murphy_p_t wrote: what's your premise for market direction? with EDV being sometimes moving 1.5xTLT, this seems like you're expecting further declines in stock market?

No idea.

I love the pair of stocks & long-term treasuries, and as a VP in a Roth I think that's a decent plan.  EDV is pretty volatile, though.  Why not TLT? Or a 25/25 split?

This sounds like a Boglehead portfolio.

moda0306 wrote: I love the pair of stocks & long-term treasuries, and as a VP in a Roth I think that's a decent plan.  EDV is pretty volatile, though.  Why not TLT? Or a 25/25 split?

I like the 50/50 split for the sake of simplicity.  The (very limited) backtesting I did didn't have a lot of volatility with that mix.  Not very scientific, I know.

Reub wrote: This sounds like a Boglehead portfolio.

Kind of, but I think they tend to use funds like AGG or BND that track a broader bond index, not just long US bonds.

Adam1226 wrote:

Reub wrote: This sounds like a Boglehead portfolio.

Kind of, but I think they tend to use funds like AGG or BND that track a broader bond index, not just long US bonds.

iirc, I posted previously about why the Bogleheads don't consider 30 yr T-Bond asset class as their "Bond" asset, as opposed to that Intermediate Bond Index BND.  IIRC, VTI had more of an inverse correlation with TLT & EDV, than VTI did with BND.

What about MDY/EDV, more zig and zag in opposite directions. More opportunities to sell high and buy low on the rebalancing, no?