Q: Hello Peter and Ryan,
I have a fundamental portfolio question if I may...I’m getting increasingly more concerned over how little the market is reacting to geo-political issues, in the sense that this non-reaction will possibly do a 180 into a sharp reaction at some point. I read Mohamed El Erian’s comments from his speech yesterday, and it certainly highlights these concerns.
I’m a true blue-chip buy-and-hold-type investor, but I’ve let some of my fixed income portion slide into conservative dividend stocks, as bonds stopped offering much in the way of income. I’m a true holder; I never sold in ’08-’09, I rode it through, and I will ride through any future turbulence as well, regardless of how steep.
Given all that, for someone in late 50s, no pension, and plans to live off the income generated from the investments (while planning to continually add some of the income back into capital to stay ahead of inflation) - and at this point in the cycle - what general percent should one maintain in GICs/high-grade-bond portion of the portfolio? And to state again, while my equity exposure is quite high today, 75-80%, it is in blue-chip type companies. On the margins I play the growth end, but only on the very far margins.
I realize that in this type of forum you can only provide general answers, so I’m only looking for your general ballpark thoughts, given how dramatically fixed income has changed in only the last few years.
I’ve marked this private, but if you feel it’s beneficial for your large audience, please feel free to publish. Thanks very much….
I have a fundamental portfolio question if I may...I’m getting increasingly more concerned over how little the market is reacting to geo-political issues, in the sense that this non-reaction will possibly do a 180 into a sharp reaction at some point. I read Mohamed El Erian’s comments from his speech yesterday, and it certainly highlights these concerns.
I’m a true blue-chip buy-and-hold-type investor, but I’ve let some of my fixed income portion slide into conservative dividend stocks, as bonds stopped offering much in the way of income. I’m a true holder; I never sold in ’08-’09, I rode it through, and I will ride through any future turbulence as well, regardless of how steep.
Given all that, for someone in late 50s, no pension, and plans to live off the income generated from the investments (while planning to continually add some of the income back into capital to stay ahead of inflation) - and at this point in the cycle - what general percent should one maintain in GICs/high-grade-bond portion of the portfolio? And to state again, while my equity exposure is quite high today, 75-80%, it is in blue-chip type companies. On the margins I play the growth end, but only on the very far margins.
I realize that in this type of forum you can only provide general answers, so I’m only looking for your general ballpark thoughts, given how dramatically fixed income has changed in only the last few years.
I’ve marked this private, but if you feel it’s beneficial for your large audience, please feel free to publish. Thanks very much….
