Looking for a specific recommendation for allocating the bond portion of your portfolio? Reasoning at bond allocation.
I think this is a reasonable allocation. I would argue for 5% in TLT for some long Treasury rate exposure and a reduction in "Money Market" of 5% to a 15% exposure.
He is playing it pretty tight with the attempt to catch a bit more from the high yield sector. He sees another possible 100 basis points tightening. If it gets another 50 basis points, I would take it and run. High yield has had a spectacular run.
Vanguard Inflation-Protected Securities Fund (VIPSX): 30%
Vanguard Total Bond Market Index Fund (VBMFX) (holds government and corporate investment grade bonds): 20% *
Vanguard High-Yield Corporate ((VWEHX)): 20%
Vanguard Intermediate-Term Investment-Grade (corporate) (VFICX): 10% * Vanguard Money Market (really really short term bonds): 20%
* more sensitive to interest rates.
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