Giving
advice on investment portfolios without regard to a client’s age,
family condition, and needs, is ridiculous. Everyone has a different
investing time horizon and current and future income needs. Those
factors affect the choice of securities. In turn, they influence the
percentage ownership and type of stocks or bonds to be held. And where
bonds are chosen, the “duration” of the bonds used.
I
would strongly advise everyone to be fully aware of what duration is
and how it works. Very few media pundits write on the practical use of
bond duration and its adaptation to take advantage of inflation, rather
than mere avoidance of bonds amidst inflation.
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