Relying on a Diversified Portfolio
Comments posted to “Should You Maintain an Allocation to Bonds When Current Rates Are Low,” by Craig Israelsen, in the May 2013 AAII Journal:
The early baby boomers who invested aggressively during the 1980s and 1990s and then survived Y2K began to focus like a laser beam on a safe, sound and “cushy” retirement at the start of the century. Then, the two worst bear markets of their adult lives began. Portfolios that remained heavily concentrated in equities were absolutely devastated. Retirement goals were delayed and/or devalued.
As a boomer who has studied asset allocation over the past 14 years, I have developed a sense of peaceful tranquility with respect to a very diversified portfolio similar in nature to that constructed by the author of this article. The bottom line is, as one well-known CNBC market madman has occasionally shouted, “A diversified portfolio is the only free lunch in the worl
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