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JDWinNOLA said, in part:

<<Why is everyone else so convinced (by conventional Wisdom, no less) that bonds are safer than stocks. Please keep arguing.>>

Of COURSE bonds are SAFER than stocks--by the definition of the two. If a company goes belly-up, bond holders are likely to get all or most of their money back.

Now as far as RISK, as it is usually referred to in investment risk, there are other factors--inflation risk, tax consequences, price risk, etc. Thus, the emphasis in these threads on continuing to invest in equities.

Now, you can take away may of the bond risks by getting a predictable return on short to intermediate-term INDIVIDUAL bonds, held to maturity and bought at no more than par. These could be govt. or higher-yeilding corp. I personally hold a CD-ladder for my reserve fund, figuring I don't need the whole lump at once, I can always get the principal, I can borrow against them at the credit union, and rates are higher than MM & T-bill and approach high-rated corporates.
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