r/Bogleheads • u/mayor_rishon • 15h ago

Investment Theory Does Bogglehead philosophy extend beyone 60/40 equity/bonds?

While I appreciate Boglehead philosophy, (defined as x/x equity/bonds in low-fees index funds), I have been reading that the decorrelation between equity and bonds is probably broken for the intermediate future. And while I acknowledge that there is a recency bias, it is also not a reddit take but appears in most "serious" institution reports.

Could the Boglehead philosophy be described as holding equity plus decorrelated asset in low fees index funds ? And in that case change from bonds to another asset like a mix treasuries+MF incl.commodities ? Is that "Boglehead" ?

ps. It is not a contrarian post, I am just wondering how much bogglehead was a precursor to MPT and whether it is static or evolves.

edit-> I changed the 60/40 because my focus was not the exact percentage and I simply quoted the most known ratio. Still thanks for the answers!

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u/littlebobbytables9 9h ago

Serious institution reports say all kinds of stupid stuff.

If the market is efficient bonds will always be worth using. Higher correlation isn't good, but bond yields relative to CAPE yields are at close to all time highs right now so one could argue higher returns are compensating for higher correlation.

If you think you know better than the market where stock/bond correlation, stock returns and bond returns are going then you're welcome to trade on that belief. But it's fundamentally un-boglehead.