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Using Stock/Bond Market Total Valuations to Guide Portfolio Allocations
ClintBarton
#1 Posted : Friday, June 08, 2018 3:01:34 PM
Rank: Hello


Joined: 5/31/2018
Posts: 8
Location: new york
Hello,

One of the key principles here seems to be to use an index fund to let the market decide on how much of my money should be invested with each company that issues stocks. I'm curious to know if anybody thinks the same idea should guide a person's allocation of stocks to bonds. I did a quick google search, which told me that the global bond market capitalization is about 80% larger than the global stock market capitalization. The same ratio is roughly true for the U.S. by itself. If I followed that ratio, then my stock/bond allocation would be about 36/64, which seems low, but is the allocation that the market indicates. Does anybody think that the market capitalizations should be used this way to guide a person's personal stock/bond allocations?

Please help

I didn't find the right solution from the Internet.

References:
https://www.bogleheads.o.../viewtopic.php?t=247225
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Thank you
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