altstrat91, I'm having a hard time understanding what you're asking. Also, if you're addressing your question(s) to both me and Howard (and Scott ought to be thrown into the mix, as well as others, such as Chris, who carry a lot of bonds), then you'll likely find that each of us worries about very different things and buys differently and sells differently. This is part of the attraction of individual bonds. They allow for so much flexibility. Total gains can be emphasized, and the money has been as good as that from stocks for a while now. Low-risk income can be emphasized, and the money has been very decent for quite a while now. So it isn't a matter of "half empty, half full" with choices making no material difference. Every choice has consequences, and every investor makes different ones, just because every investor's situation (means, needs, skills, and goals) will be different. But I'll lay out mine. My goal is "capital-preservation", meaning, the true preservation of purchasing-power after taxes are paid and a realistic rate of inflation is subtracted, not the lie that is the CPI. Using a game-theoretic version of classic value-investing (as Graham lays out the latter), I buy across the yield-curve and across the credit-spectrum what seems like it should be bought. In other words, my investing-objective is the very conventional one of "multi-sector bond-investing", and managers like Fuss are my benchmarks and bogies. If I'm making the same money as the top 10% of fund managers in that asset-class, then I'm holding my own. Currently, not a penny of the money I make in bonds is needed to meet current expenses. OTOH, if I chose, I could support myself at least twice over from my investing alone. So, for me, investing is a game but with a very serious purpose. If I should ever need the money that investing can provide, I want the skills to be already in place. That's why I practice, practice, practice. But, also, I don't worry too much about daily, weekly, quarterly, yearly numbers. "They're good enough for the girls I go dancing with." How do I intend to deal with the likely effects of Bernanke's recently-announced, QE Infinity? Mostly by ignoring it and him. Markets are going to do what they are going to do, and his policies will have less benefit than he hopes. Yes, the bond-shopping has gotten immensely tougher due to rising prices. But I still shop daily, and I still spend significant time building and refining my searching and vetting tools. I'm a bond-investor. That's not merely what I do. It's who I am, and I play the game very seriously until, of course, I find something better. LOL.Charlie
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