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Just skimmed this. Looks interesting. Problem I have with specific advice like this: Is this free investment advice from Merrill Lynch the same as what they tell their wealthy clients? Something tells me it’s inferior to what their paying customers get. Perhaps “stale” advice that others have already acted on?
Reasonable I suppose is their recommendation to own short duration bonds now. What I’m doing. But it raises the interesting question of when, if ever, will U.S. investment grade bonds be a good investment again?Conventional wisdom seems to suggest that longer dated bonds only make sense during bond bull markets. Well - We’ve been in a 36 Year Bond Bill Market - dating back to 1982 when rates began falling.
Surely investors won’t need to wait 36 years until the current bear market in bonds ends? 36 years until bonds become reasonable value? I’d like to think fixed income of varying duration can be a productive asset within a portfolio even during periods of generally rising rates. Much depends on manager and techniques used. Just some thoughts.
Comments
Just skimmed this. Looks interesting. Problem I have with specific advice like this: Is this free investment advice from Merrill Lynch the same as what they tell their wealthy clients? Something tells me it’s inferior to what their paying customers get. Perhaps “stale” advice that others have already acted on?
Reasonable I suppose is their recommendation to own short duration bonds now. What I’m doing. But it raises the interesting question of when, if ever, will U.S. investment grade bonds be a good investment again?Conventional wisdom seems to suggest that longer dated bonds only make sense during bond bull markets. Well - We’ve been in a 36 Year Bond Bill Market - dating back to 1982 when rates began falling.
Surely investors won’t need to wait 36 years until the current bear market in bonds ends? 36 years until bonds become reasonable value? I’d like to think fixed income of varying duration can be a productive asset within a portfolio even during periods of generally rising rates. Much depends on manager and techniques used. Just some thoughts.