Marc, I think all IRAs need an income component. However, I prefer to use more exotic ideas than straight bonds most of the time. For example, credit option spreads, paired trades, T-bond and note buy/writes (this strategy, which is a turkey for stocks, is wonderful for bonds), etc. If I had to buy straight bonds in an IRA, I would want heavy foreign, non-dollar representation in countries that are more honest than the US Treasury and Fed. These would include Germany, Switzerland, Canada, and, maybe, England. A good fund that does that for you is DSI, though it has certainly not performed well this year.
I would require at least a 40% income component with stocks at these levels. |
