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Rekenthaler Report

Rekenthaler: What’s in My Portfolio

It can be difficult to invest by the rules, when life intrudes.

Mentioned: ,

Wednesday’s column discussed my portfolio’s asset allocation. I had not written directly about that subject before, but I had argued for the merits of owning more stocks. Thus, my 91% stock position may not have come as a complete surprise. (Nor, it turned out, as a complete anomaly, as several readers disclosed that they follow similar approaches.)

(That column came down rather too strongly against bonds. Such is the nature of essays; the need to move an argument along, forcefully, without getting mired in side paths, can lead to overstatements. What I should have added: The allocation also depends on market conditions. There are times when Treasury bonds tempt because they pay out more than the stock market’s earnings yield. However, this is not one of those times, as Treasuries are at 3%, and the earnings yield just under 4%.)

John Rekenthaler has a position in the following securities mentioned above: VTI. Find out about Morningstar’s editorial policies.