If your investment objective has a time horizon of more than three years, and certainly if it is more than five years, there is likely no need for you to do anything more than allocate your portfolio’s fixed income assets into a plain vanilla bond ETF like AGG or a low-cost index mutual fund like Vanguard Total Bond Market Index (VBMFX).
Investors looking for higher yields may need to consider a solid actively-managed, multi-sector bond fund like Loomis Sayles Bond (LSBRX) and/or consider adding some high-quality dividend stocks to your portfolio.
But then, don’t just gather your investment ideas from financial articles like this, and definitely don’t make moves based upon the big money managers talking their books…
Ignore the noise and invest to your objective!
As of this writing, Kent Thune did not hold a position in any securities mentioned in this article. Under no circumstances does this information represent a recommendation to buy or sell securities.
This article is brought to you courtesy of Kent Thune from Wyatt Research.