Bonds Valuations in Counter Cyclical “savings” portfolio
From what I understand, counter cyclical indicator seems to be focused on altering the equity allocation when the equity upside is diminished , however how does a saver know when or if bonds in the portfolio are “overvalued” or “overallocated”? (For bonds I assume we talking something like AGG or the international equivalent rather then IEF).
I think the underlying assumption here is that bonds are generally less volatile then stocks (particularly when the business cycle and thereby equity decline), though it seems we maybe “ignoring” if bonds themselves are expensive.
As Counter cyclical savers do we care about bond valuations in themselves?
Marked as spam