Personal Investments • managed futures to improve withdrawal rate

I wasnt suggesting it as a good standalone asset to hold 100% of the portfolio. I am suggesting it is a better diversifier than treasury bonds for a 60/40 portfolio. It has negative correlation with stocks, reducing the drawdowns.

+1. I have an 80/20 portfolio - or, rather, an 80/10/10 portfolio. My "non-equity" side is composed of 10% TIPS, 5% gold and 5% commodity futures. I've passed on bonds completely as I see no need. The beauty of this mix is its as negatively correlated with equities as possible and actually provides the "ballast" to equities when they draw-down (unlike bonds):

https://www.portfoliovisualizer.com/bac ... UfFtf15zVN

Additionally, this mix also keeps up with inflation (unlike bonds).

Statistics: Posted by mbouck — Thu Apr 04, 2024 1:30 am — Replies 6 — Views 467

---