No. of Recommendations: 3

The Goldilocks Strategy for Prudent Investors

By DAVID A. LEVINE, New York Times, JULY 1, 2016

to minimize the real risks we all face in meeting our unknown, long-term financial obligations, you need a strategy that produces reliable, spendable cash flow and superior returns, minimizing the likelihood that the inflation-adjusted value of your portfolio will decline over time.

...intermediate-term bonds, over the long run, are superior not just to cash but to long-term bonds as well. So when thinking about where to invest your fixed-income assets, remember Goldilocks: The best place to be is not too long and not too short....

Extend your maturity beyond intermediate, and the additional expected return that you gain seems wholly inadequate compared with the amount of extra risk incurred....

...the place to be is what is essentially a large “sweet spot” between short and intermediate. That’s where the reward-risk trade-off is at its greatest. ...
[end quote]$IRX,$US...

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