7 ms·

you can build a portfolio of bonds that satisfy your risk preference and target yield. bonds can also be leveraged a lot which is how they are the largest finan

you can build a portfolio of bonds that satisfy your risk preference and target yield. bonds can also be leveraged a lot which is how they are the largest financial market in the world trumping stocks by few orders of magnitude. a return of 8-9% on broad market index like SPX in a year when the market made 20% profit tells me you're very risk averse.

cj 3y ago
(Stupid question) how does someone, who is not risk averse, go about executing the strategy you’re advocating for? Are Barclays bonds available for purchase via a consumer brokerage account?
- mrcode007 3y ago
  You can browse bonds in Schwab and interactive Brokers for example. Fwiw I am not saying to go and buy Barclays bonds, but merely exposing the fact that a market far larger than the stock market exists. Edit: one thing worth pointing out is that there are also municipal bonds which are tax free if you live in the jurisdiction of the issuer. https://www.municipalbonds.com/bonds/issue/79771PU86/ https://www.municipalbonds.com/bonds/issue/79771PU86/ Here’s an example of the SF muni bond at 8.4% coupon currently yielding ~6%