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Thank you very much for your detailed and thorough response

blearynet,

"Thorough" I'd agree to, but not "detailed". "Detailed" is your job. All I did was provide one possible outline on how to go about deciding whether to buy any bond or not.

There are many, many ways to do this bond-investing stuff, and each investor must develop his or her own, otherwise the buying is no better than dart-throwing. When markets are benign, that works just fine. But over the long haul, those who invest off the cuff and without a plan are going to get killed. That's why 'process' matters. One's process is simply the step-by-step implementation of one's 'edge'.

It can be endlessly argued whether markets are a positive-sum game. But the far better tactic is to assume they are a negative-sum game in which survival/profits depends on having an 'edge'. That's where investors in any asset-class need to begin. They need to identify a reason why they will be able to pull more money out of markets than they bring to them in the time-frame and asset-class in which they choose to work. Value-investor, Marty Whitman, argues that most investors won't have access to superior information. But making superior use of the available info is possible, and that becomes the basis of one's edge and plan.

Charlie
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