MG: Re: <I know it's crazy but, I think BKX.X might bounce.>
It has been financial turmoil in the swamp! They certainly deserve a bounce. It is really sad when one looks at a chart of some of them, such as BAC.
The Phleet is still in port, thankfully! Personally, I decided to join TM in CSC at $60 1/8. It was just too close to the weekly LTL to ignore. It's almost entertaining to watch it get killed just because GS has it in some index with UIS. They couldn't be farther apart in their business models. Alas, thanks to Mr. G, it may have been premature.
FWIW, while I've repeatedly stated that I don't deal with those fixed income animals, the best advice on the issue I've seen is to ladder the fixed income portfolio. Choose a 5- or 10-year period (I suggest the former) and equalize the bond maturity dates over that period. Probably would also be best to have them in a separate account and just not open the monthly statements. <g>
Most folks probably don't appreciate that bond values are probably more volatile than equity investments. As always, who cares unless you have to sell. The benefit of the bond is that, within reason, the principal is secure if one holds to maturity.
Just a View from the (possibly very wet) Swamp
TB |
