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No. of Recommendations: 2
Part of this has to do with how much time you have to spend on investing and research etc. I'm retired. My CAPs portfolio is the stocks I own. I check CAPs every morning to see if something has changed by more than say 2%. Then you want to know why. Some news event? And react accordingly. I check the change in value for the last 90 days once a month and use that to decide what to buy and what to sell. I try to own good performing stocks while they perform. So every month trim a few under performers and buy something I this is doing better.

As a retiree, I have the time. But working people are busy and may not have time for all that. They are more likely to invest in mutual funds or etfs and let the pros pick the stocks for them (or own baskets of stocks matching certain indexes or sectors.)

As your resources grow and as you gain experience, many would add an international fund, a growth fund, a hot sector fund, sometimes a bond fund. Then gradually add individual stocks as you become aware of good opportunities.

Bond funds are hard to hold when interest rates are low and likely to rise. Prices are likely to fall. If you want to own bonds, buy the bonds themselves and hold to maturity. Investment grade bonds, probably with maturities under 15 yrs. Their market value will decline as interest rates rise, but you get full face value at maturity. Hence, market value does not matter to you unless you are forced to sell before maturity.

I think the fact that you are trying will lead to success as you figure out what works for you and as you become more experienced. The most important part is that you are saving and investing with a steady plan. Otherwise, your plan seems reasonable to me. Most individual investors are best off to invest for the long term. But when you become aware of good opportunities, I see nothing wrong with investing part of your funds. Some will do very well, at least for a while. Others will need to be trimmed if they fail to meet your expectations.

Good luck with your choices.
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