Posted: Mon May 09, 2005 11:21 am
Zendrix - I think that is a very clever thing to do. EM debt is much more volatile than our usual garden variety FI/bonds.
When I give the "quick" overview of my base portfolio I say:
40% global equities, 30% real stuff(reits/commo/metals), 30% FI.
But the FI actually consist of equal parts of TIPs, PFUIX(foreign developed) and PEBIX (EM debt). (- and some GIM for good measure).
MENTALLY I have the 10% EM debt in a seperate class with equity like volatility - creating a 50% "equity volatility" and 50% "other volatility" group. - Now one could start looking at the "other" category and argue that most of that (VNQ/PCL+PCRIX+VGPMX) have equity level or higher volatility TOO.... hmm....
Cheers!
When I give the "quick" overview of my base portfolio I say:
40% global equities, 30% real stuff(reits/commo/metals), 30% FI.
But the FI actually consist of equal parts of TIPs, PFUIX(foreign developed) and PEBIX (EM debt). (- and some GIM for good measure).
MENTALLY I have the 10% EM debt in a seperate class with equity like volatility - creating a 50% "equity volatility" and 50% "other volatility" group. - Now one could start looking at the "other" category and argue that most of that (VNQ/PCL+PCRIX+VGPMX) have equity level or higher volatility TOO.... hmm....
Cheers!