An Argument Against Asset Allocation
Terrible advice. What good is a 4% dividend if your principal loses 14%? That is a net loss of 10%. Do they still teach arithmetic in school?
I tweeted (@BillGunderson) on Thursday that the above chart of muni bonds was the worst chart that I had seen all day.
Excuse Number Four:"High-yield bonds are still the best place to get an attractive yield." Bad advice again. Junk bonds are just as susceptible to rising interest rates as any other kind of bond. The chart above still looks like it still has a long ways to go on the downside. Excuse Number Five: "Who cares about what America does with its monetary policy, we own foreign bonds, they could care less what
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