Row 72594

Row ID: 72594 | Dataset Entry | Axioma AXP Content Repository

Content Data

This page contains data entry 72594 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Your assumption is 100% equities always outperforms some mixed equity and bond mix. If that were true, why would anyone ever buy bonds? The equities always outperform, so why not just buy them?

The truth is diversified portfolios that include bonds have outperformed 100% equity portfolios many times in history. Part of it is bond returns and lack of volatility, but part of it is forced rebalancing. Each month the allocation must be balanced which forces taking gains when the market goes up, and deploying capital from bonds into equities when markets are bad.

It's unfortunate that the younger generation truly believes that diversification is bad, both geographical and security type.

FieldValue
text Your assumption is 100% equities always outperforms some mixed equity and bond mix. If that were true, why would anyone ever buy bonds? The equities always outperform, so why not just buy them? The truth is diversified portfolios that include bonds have outperformed 100% equity portfolios many times in history. Part of it is bond returns and lack of volatility, but part of it is forced rebalancing. Each month the allocation must be balanced which forces taking gains when the market goes up, and…
label r/investing
dataType comment
communityName r/investing
datetime 2024-05-24
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url_encoded Z0FBQUFBQm5Lak94Tk4wQlY1U2lLdnZiZ3RpbXVxUTd5dWM3SEhWZDRhVlVuLVpTWVVOMlR1Q0ZzLVloZVJaUmg2eVVyZVkzZktRc0NYeVhrVzdmaGlUckRyMzRYSDlwR2Y4VHdIMjNOLUVsUk9QT2hsemx1N0JJNmFYWU81SkpiYUgyT1ZJVnBGSmVLZWpHVXRvUGFxUEtabnZUYUdzNFhuMjMwRzB3SEc5T3E0Q3JaSjc2SWlKMEZTeDJpTGlYTDBPRll5d1FwdmZYSmFtRkRZRUdtUm9aVTA3bmJpUTFoQT09

Raw Record

{
  "text": "Your assumption is 100% equities always outperforms some mixed equity and bond mix. If that were true, why would anyone ever buy bonds? The equities always outperform, so why not just buy them?\n\nThe truth is diversified portfolios that include bonds have outperformed 100% equity portfolios many times in history. Part of it is bond returns and lack of volatility, but part of it is forced rebalancing. Each month the allocation must be balanced which forces taking gains when the market goes up, and deploying capital from bonds into equities when markets are bad.\n\nIt's unfortunate that the younger generation truly believes that diversification is bad, both geographical and security type.",
  "label": "r/investing",
  "dataType": "comment",
  "communityName": "r/investing",
  "datetime": "2024-05-24",
  "username_encoded": "Z0FBQUFBQm5Lak1nZ0ROWDVEeFl5blN0X3h5R2QzWGhWQ1V0V2U1Wk54RzNSOXJuRFNiQ1FRNFpWcUZJU015dlFqb29MMjd4TlI3SWtUNnBldHdUNGJWMzdEZjgxeUhEcWc9PQ==",
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Entry Information