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Full disclosure...I'm not smart on bonds. The bonds I currently hold (US Gov't bonds) make up the what-if-everything-goes-to-hell part of my portfolio.

OK, with that said, I'm currently looking over my portfolio and considering some changes. Here's what I've currently got going on:

US Bonds (Short-term securities and IBonds) - 20%
S&P Index - 35%
NASDAQ Index - 15%
Assorted Common Stocks - 30%

I'm thinking about taking the money I've been putting into gov't bonds and instead investing in a fund that tracks the LBA Index. From what I understand, funds like this are only likely to appreciate in a falling-interest rate environment. I don't expect we're going to have that kind of environment for quite a while. But, I've got a long-term outlook (20-25 years), and I'm willing to wait for interest rates to climb and fall again. In the meantime, this seems like a good opportunity to buy shares in the LBA Index fund while their cheap...

I'm I way off base? Am I missing something important? Looking for a little education...

Bambam

BTW, the fund I'm looking at is tax-deferred...don't know if that is a relevant variable or not...

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Bambam-I don't know the best way to bet on interest rates going up.I have shorted TLT(Leahman 20 yeartreas.)I woul switch 15% QQQ to BBH and 35% S&P to DIA.Just my humble opion.
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