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progree

(11,675 posts)
17. No safe havens - the bond market has done even worse in the last 3 years
Thu May 16, 2024, 10:47 AM
May 2024

This was a study I did, a few weeks ago -- for the 3 year period ending April 9:

VFIAX, the Vanguard S&P 500 fund gained 12.9% (total return, including reinvested dividends) when adjusted for inflation. So that's positive, but not much for 3 years.

VCOBX, a Vanguard intermediate term core bond fund that I have is down in nominal dollars (again, with reinvested dividends). And when adjusted for inflation, is down 21.8%.

The stream of income from my fixed income annuity is down 17.9% in purchasing power

I doubt the numbers would be much different if repeated today except VFIAX would be somewhat better while the bond fund would be equally dismal. But here are the links I used
https://www.morningstar.com/funds/xnas/vfiax/chart
https://www.morningstar.com/funds/xnas/vcobx/chart
CPI: https://data.bls.gov/timeseries/CUSR0000SA0

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Consume! Obey! Voltaire2 May 2024 #1
Here we go, gab13by13 May 2024 #2
Because our current economy is based on consumer-spending, no_hypocrisy May 2024 #3
Manufacturing with exports also depends on consumers. Voltaire2 May 2024 #29
Rein in your spending? Aussie105 May 2024 #4
The public may feel this more than normal, more than the 1970s bucolic_frolic May 2024 #5
I don't think people being less wasteful... Think. Again. May 2024 #6
The entire system would need to be careful jimfields33 May 2024 #7
Yeah, irresponsible fund managers are always a problem. Think. Again. May 2024 #8
Then fix that. jimfields33 May 2024 #9
I've got a shovel... Omnipresent May 2024 #10
I'll help. jimfields33 May 2024 #13
Me? I'm not an elected official. Think. Again. May 2024 #12
Just generally. jimfields33 May 2024 #14
absolutely.... Think. Again. May 2024 #15
Absolutely agree. jimfields33 May 2024 #16
No safe havens - the bond market has done even worse in the last 3 years progree May 2024 #17
Putting retirement funds in stocks is too risky. Think. Again. May 2024 #18
In the face of withdrawals and inflation, it is riskier NOT to have a high equity allocation progree May 2024 #20
Interesting... Think. Again. May 2024 #22
"I guess the concern about a failing economy breaking people's retirement plans is wrong" progree May 2024 #23
I just believe that... Think. Again. May 2024 #24
Over the long run, equities are the safest investment by far in the face of withdrawals and inflation progree May 2024 #25
Cool, so the retirement funds the poster was worried about ARE safe. Think. Again. May 2024 #28
In the long run, his retirement funds are better off in equities than in fixed income progree May 2024 #32
Most people have very small retirement accounts. Voltaire2 May 2024 #19
"We're all players now!" dpibel May 2024 #30
Yup. We've been fully inculcated. Voltaire2 May 2024 #33
When Taylor Swift tickets snowybirdie May 2024 #11
And yet, the stock market hit a record high yesterday Scrivener7 May 2024 #21
Scr#w the experts Ritabert May 2024 #26
Oh. I guess we'll be back to living paycheck to paycheck. Silent Type May 2024 #27
Many good comments here. SarahD May 2024 #31
They are just now figuring that out? Warpy May 2024 #34
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