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To: kvkkc1 who wrote (56979)	2/1/2002 1:21:19 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77397

I agree. People sometimes mistake bond investments as a good vehicle for reducing risk. The reality is that if you want to reduce risk you need a combination of stocks and bonds. That is what will reduce portfolio volatility and increase your returns to boot. I've had this same conversation with my brother who has most of his money in bond funds. He's done so well in the last couple of years, he is convinced it will continue to do well going forward. His primary objective is preservation of capital and minimization of volatility. I've been telling him, that either he should get truly diversified or at least put his money in blend-funds. Bond funds are not the way to go to reduce volatility. It's a common misconception.