Don't play with bonds.

[fenders53]

(03-16-2021, 11:25 AM)jalanlong Wrote: Right now I keep them as 20% of my portfolio for safety in situations like 2008 or early last year. They are a high price to pay to damper portfolio volatility though.

If I could talk myself into it I would get rid of that and gold and go all in on cash and dividend growth stocks.


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Most of my investing career they were not at all a high price to pay for some insurance.  The risk/reward was not out of balance for decades.  The game COMPLETELY changed last year unless you thought we might go negative interest rates.  That's not out of the question a year or two from now if the economy runs out of gas.  For now it is out of the question as we come out of Covid.  I really think LT bonds get hit worse by summer.  I saw zero safety in them starting about MAR 2020.  I ran to ultra short-term bonds hating the small yield.  Turned out not much better than cash.  

I skipped gold until a year ago.   I sell puts on the top miners (NEM and GOLD), so I have some hedge on my hedge.  Didn't time it perfectly as always but get by with it anyway as premiums and dividends cover small dips in gold prices.  I am not comfortable holding a lot of anything PM related.