"Act so as to keep the mind clear, its judgment trustworthy" - Dickson G. Watts, author of Speculation As A Fine Art And Thoughts On Life. [A brief summary here (link)]

Monday, December 20, 2010

bonds

I'm not a bond guy, but if I were allocating part of my portfolio to bonds, this is how I'd do it. Whatever you do, DO NOT allocate more than 2-3% of your portfolio to a single bond. Doesn't matter if it's rated investment grade. You can buy it investment grade and the next week it can be non-investment grade. Trust me, I know from personal experience.