Municipal Bond Forum
Keeping some dry powder
Q
Great article on laddering! I love long-term bonds, 20 to 25 years. I do get pressure from my financial team to use shorter-term ladders. If I stay in tax-free bonds (85% of my portfolio), where should I invest the other 15%? Is all bonds and cash a bad risk? What about gold and silver?
A
James A. Klotz responds:
It is never a bad idea to keep some dry powder on hand. We would also have no quarrel with maintaining a small position in gold as a hedge against inflation, which is the only true enemy of fixed-income investments.
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