The Importance of Investing in World Reserve Currency Bonds

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If you lived in say Turkey or Argentina today, would you put 40% of your assets in the bond markets of those countries? Of course you wouldn't. What this article is actually telling us is that we should only be buying bonds in currencies that are used as world reserve currencies. We should not be buying bonds where they are floating their own bonds in somebody else's currency. Those are speculative instruments and nobody should be using them in a retirement portfolio. Therefore bond traders, not for people trying to live off their portfolios.

In this episode we answer emails from Pete, MyContactInfo and Jenzo. We discuss leveraged funds, a paper about holding them longer term and optimal leverage, analyzing leveraged portfolios, meta-concepts of retirement portfolio planning and how to separate the critical components of a withdrawal strategy (the dogs) from various management techniques, labeling methods and mental accounting (the tails), and last year's scare paper about hyper-low safe withdrawal rates of poorly constructed international portfolios.

Links:

Leveraged Portfolios Article/Paper: Double-Digit Numerics - Articles - The Big Myth about Leveraged ETFs (ddnum.com)

Sample Optimized Portfolios Article: What Is a Leveraged ETF and How Do They Work? (optimizedportfolio.com)

Analysis of UPRO vs S&P: https://tinyurl.com/me4c2xj9

Analysis of TNA vs. IWM: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Analysis of TMF vs. TLT: Backtest Portfolio Asset Allocation (portfoliovisualizer.com)

Portfolio Charts Risk/Reward Calculator: RISK AND RETURN – Portfolio Charts

Portfolio Visualizer Efficient Frontier Tool: Efficient Frontier (portfoliovisualizer.com)

Bond Funds vs. Bond Ladders: Owning Individual Bonds vs. Owning a Bond Fund - A Wealth of Common Sense

Low Safe Withdrawal Rate Paper: delivery.php (ssrn.com)