Portfolio allocation

Bonds over the long run hardly beat inflation. Risk in investing (you can search it up) is defined as probability of making a loss.

Bonds, if unable to beat inflation, are a high risk almost guaranteed lost investment. The correct term the general public refer to is it is a Low volatility asset. They have other purposes but for long term investing as Frankie and YJ have shared, it drags yours portfolio down.

However, if you do want to reduce volatility if you are unable to stomach larger drawdowns, yes adding bonds may reduce volatility but it comes with the opportunity cost of potentially much much lower returns

When You look at the chart of YJ

you see the bond advantages, almost no

price deviations on stock crashes.

traditionally (and still) portfolios created by professionals for retail investors were like 70% stocks & 30% bonds (or 60/40).

For that bond stability part of the portfolio you pay a price: almost no capital appreciation. Also someday the interest rates will rise, that could lead to bond price drops. Also some think there could be an upcoming corporate bond crisis, BNDX however is holding predominantly sovereign bonds.

I always think that physical gold today could be a very good substitute for bonds counterweighing stocks risk, however without any distributions but costs/efforts to store it safely. Many do not like gold.

Maybe you must try out your own style.

If you have time (more than 15 - 20 years) to let your money grow without time intense own research (which is misleading anyway) and you want invest into a single item: an MSCI ACWI ETF has the best chances to do the job.

some more ideas here:

https://seedly.sg/questions/what-is-your-genera...