Fact is Bond interests are in few percentage points only. If we do trading on them, we are going to waste away the marginal returns. When we put into equity, how confident are we to beat the cost and the dynamic of the markets. Will this further accelerate our losses if the market suddenly turn negative ?
Let's go back to basic on Cory bond investments. To provide a damping effect so that he can sleep well. In addition to provide baseline returns. In yesterday onslaught, portfolios turns 5% negative which compared far better than STI 13% negative range.
Ofcourse Reits come to the rescue too which managed to retard the deceleration better than many other stocks.
So if Cory is to be greedy, he needs to be in better footing which Safe Bonds can provide. Warchest and saving should be better options to expand the investment to tap on rising market. When this happen, Portfolio bonds percentage will naturally go down.
The next question is, are we in rising Market?
This is Billions dollar question. Cory do not have good answer. Probably should Jeep slowly across the period of weeks and months. Make sense ? One thing for sure, is a good thing to happen so that he can increase his dividends with lower cost !
Cory
2020-0310
