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Subject:  Re: The Goal of Bond-Investing Date:  5/21/2010  1:33 PM
Author:  Prophet43M Number:  30884 of 35576

Sorry for the abusive use of copy and paste but I believe Jack's post is so good that it bears repeating.

Jack said......

"Individual bonds tend to be safer than individual stocks. A poorly purchased bond will do less damage then a poorly purchased stock. A prudently purchased bond will add less than a prudently purchased stock. Individual stocks tend to be more volatile than individual bonds.

I state the above because there is often this bad idea pitched that sounds an awful lot like "bonds are safe" or "holding some bonds makes my portfolio safer". Neither statement is true. A 60/40 balance of poorly purchased asset