Bonds

12-1-24
(10yr T-Bond)

BONDS
Updated Monthly

100 - [100 x ( Curr. PI - Avg. PI / 4 )]

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(Avg. PI x 2 - Avg. PI / 2)

Avg. Price to Interest PI   22

Current Price to Interest  24

% Allocation  44%  

44% x .50 (max. allocation) = 22% (rounded)

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION

Active Allocation Bands (excluding cash) 0% to 50%

29% - Cash -Short Term Bond Index - VBIRX

 49% -Gold- Global Capital Cycles Fund- VGPMX**

  22% -Lt. Bonds- Long Term Bond Index - VBLTX

  0% -Stocks- Total Stock Market Index - VTSAX

[See Disclaimer]

**Vanguard's Global Capital Cycles Fund maintains 25%+ in precious metal equities the remainder are companies they believe will perform well during times of world wide stress or economic declines.  

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Harnessing market hubris and timidity (greed and fear).

The value player’s most important weapon in achieving superior long term returns is tactical asset allocation.  This is true during secular bear markets when fixed asset allocation, especially those with high percentage of stocks, returns are dismal at best and losses at worst.

History and math show that when asset prices are below intrinsic value future returns are superior conversely when asset prices are above intrinsic value returns are tepid.

Simply put tactical asset allocation strategy is being more aggressive in undervalued assets and less invested in over valued assets.

DYI’s formula is an averaging formula answering the question what percentage without emotion.
 

DYI

This blog site is not a registered financial advisor, broker or securities dealer and The Dividend Yield Investor is not responsible for what you do with your money.

This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!

The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.

The Dividend Yield Investor shall not be held liable for any loss and/or damages from the information herein.

Use this site at your own risk.

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

DYI owes a large amount of gratitude to John Kingham for his averaging formula.