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Subject:  Re: I'm getting killed in the bond market Date:  3/28/2020  4:44 PM
Author:  Arindam Number:  36764 of 37057


How many positions one carries --be it stocks, bonds, whatever-- is a direct function of one's personality which --in turn-- determines one's investment plan. I HATE to make big bets, but I'm willing to make many, many small ones, none of which will get me thrown out of the game.

As to sticking with corporates alone, that, too, is a personal decision, but one I think isn't smart or consistent with classic, Ben Graham-style value investing. When munis are being trashed --as they were in the fall of '10 (or whenever), but after Meredith Whitney's pan of them happened-- solid, upper-tier credit could be picked up that offered safer, better returns than corporates. Same-same with every niche in the asset markets. You've gotta buy what's on sale, when it's on sale, and you never, ever worry about "laddering", or "diversifying", or any of the other MPT nonsense.

However, here's the irony. If your buying is disciplined and consistent and your risk metrics emphasize prudence, you end up "properly diversified" with a robust, 'all-weather' portfolio that lets you sleep at night. E.g. YTD, I'm now down just (-1.49%). That's tolerable, and it gives me the ability to step back and to wait things out.

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