mikedamas

4 ms·

1. 1.▲
   by mikedamas 17y ago

   Stocks are inherently riskier than bonds. Lower on the capital structure of companies (last to have a claim on company assets) and stock cash flows have much greater uncertainty than bonds. The statement that "stocks have higher returns tha
2. 2.▲
   by mikedamas 17y ago

   A few comments on the Permanent Portfolio (25% Gold, 25% Stocks, 25% Bonds, 25% Cash): 1) Cash is simply a bond - very short-term, but a bond. So, since the 25% that is in bonds is, presumably, a fund, they usually have a duration (interest
3. 3.▲
   by mikedamas 17y ago

   Recommended reading: The Intelligent Asset Allocator (Bernstein). My implementation of an asset allocation strategy includes a well-constructed bond portfolio using primarily individual bonds. see www.marylandcapitaladvisors.com, for exampl