Just a quick post here. This is interesting to me. I am commenting on what this author is talking about, and not my own research or knowledge. Their position is compelling. Cash is better than long term bonds in a rising interest rate environment. This is what the Fed is saying they will do for the next year. This is why we have cash in T-bills and I-bonds. We are not spread into precious metals, and I think that is coming. Both of these are hedges against poor bond performance.
The bigger question to me is do I pull money from my existing bond fund investments. For now, no. Still, that may change. What are you folks doing? This isn’t about timing the market, but it is about reacting to it.
My suspicion is that I will adjust down to a 60% stock 40% bond ratio as we cross 3.5% yield on bonds; perhaps 4%. I could go as low as 50/50 if we go past 4%. A lot will do with how close we are to are to fire when that happens of course, and how well our investments do.