(02-04-2014, 12:15 AM)Dividend Watcher Wrote:(02-04-2014, 12:02 AM)Dexter Wrote: I think what you have is fine.
In my opinion the best way to diversify a DGI portfolio is to include other asset classes like bonds. I am a big fan of DGI but I do not have the stomach for 100% stocks
Dexter, I'm just the opposite. After losing a large percentage of principal in long-term bond mutual funds in the 80's, I just cannot justify in my mind buying bond funds ever again. This was during a period of slowly dropping rates so you would logically think I should've at least broke even.
Right now I'm 96% in the market and, with the KO trade this morning, my wife has less than $5 cash in her account.
Yikes, with dropping rates wouldn't the bond funds increase in value?
Note my bond funds took a huge hit last year, but most recovered. My TLT position is finally in the green again.