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Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Bonds & Fixed Income Investments: FAQS||Date: 12/16/2009 8:27 PM|
|Author: TMFGalagan||Number: 29500 of 35930|
Primary, there are two groups of people who frequent this forum: those who make directional bets on interest-rates, and those who make directional bets on credit-worthiness. Both are gamblers in every meaningful sense of term. How they describe themselves is merely to identify the kind of gambling they are doing.
Hey Charlie -
I see it very differently (as usual!). The two groups I see are (1) those for whom bonds are the predominant if not sole investment in their portfolios, and (2) those for whom bonds are only a piece of a more diverse portfolio.
When you criticize the latter group's bond portfolio, you have blinders on. You're not looking at the rest of our investments. We deal with company-specific risk, tax risk, inflation risk, and a dozen others using other types of securities. We're not naive. We just don't handle the risks the same way you do. And since this is a bond board, it seems off-topic to talk about how we integrate non-bond holdings into an overall portfolio.
Your stories are fascinating to me because you've managed to take a single tool and make it do so many useful things. I prefer using different tools, and I achieve the same ends.
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