The ones suffering the most are the retirees, and they aren’t earning a salary to dollar cost average into this market. Most had an AA set, and a good number of them were geared towards conservative investing. The crippling of the bond funds, along with low interest rates on MMs & CDs, is destroying seniors.
“The ones suffering the most are the retirees, and they aren’t earning a salary to dollar cost average into this market.”
Yeah I was talking about investing while one is working in order to be able to retire in the first place. But I do think retirees should continue to invest in the stock market as a hedge against this inflation with a conservative asset allocation mix of index stock and bond funds.
The key is to save and invest enough while working to attain critical mass so a retiree can absorb ups and downs and be able to maintain sufficient cash etc without having to sell stock funds at the wrong time.
But your point about bond funds is spot on. The govt has screwed things up royally. Rising rates has savaged bond funds. Given that I have a higher weighting of high dividend stock funds and cash that I would normally like but I can absorb the ups and downs.