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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (58869)	1/6/2017 5:33:24 PM
From: Graham Osborn	1 Recommendation Recommended By staring Respond to of 78748

Grommit, I must say that your strategy of "diversification" among yielding assets troubles me greatly, notwithstanding its outperformance over the past 8 years at least. That the assets were good purchases then - as were many others - is likely, however your analysis to date does not seem to appropriately represent the speculative nature of yielding assets for principal enhancement. If you were an insurance company, this investment of premia would be most unwise (indeed, insurers have legitimate reasons to harvest principal right now). While it sounds like you are making some wise harvests, I wonder whether your conservatism goes far enough in protecting you against an ultimate increase in long bond yields. There's nothing wrong with selling into a mania - but buying into one is a different matter.