Registered: Jun 2011
03-08-13 11:14 PM
for diversification just for diversification's sake, if you don't want to be in 100% stocks (which I still think long term is the best place to be) you could look at GLD or one of the commodity etf's. And no kidding, it's probably a little early, but at some point here, an inverse bond fund. But we are talking 10% or less of your total liquid net worth. Personally, I keep 10% of my stock portfolio in GLD. But that is just to adjust for inflation.
Quote from sneakoner:
Money markets aren't paying anything right now and I thought bond funds would be the next best thing - low risk with high enough return to beat inflation...I was right with the short term and intermediate term funds but I didn't realize how volatile long term bond funds are.
When retirement is on the horizon, you can and should take a look at bonds, but not now. I wouldn't give taking a loss on a bond fund at this time a second thought. At least you will be getting out before it gets bad, even though it might be a little early. The yield on the S&P 500 index is beating the yield on all the bond funds. As a matter of fact, I should just sell my bonds and put it all in the index. But I can't forsee all that can happen in the future so I stay diversified. If I lose it I can't make it back. (unless this forex trading thing works out.)