For most clients investing in taxable accounts, sticking to high-quality short and intermediate bonds
should, for a large portion of their fixed income portfolio, mitigate the effects of these occasional liquidity crises.
The Loomis portfolio is invested in intermediate bonds
, which Riddix says could help absorb any bumps if interest rates rise, The Loomis fund's current 4.
Asset mix guidelines identify asset classes - such as large cap stocks, mid cap stocks, small cap stocks, international stocks, intermediate bonds
, international bonds, and high yield bonds - approved for investments with the maximum and minimum range for each asset category.
For intermediate bonds
, the standard deviation of returns was lowest in the 1960s (0.
are an investor's friend: They produce a hefty portion of the returns of long bonds with much less principal risk.
Therefore, intermediate bonds
have both medium-term downside risk and very low risk premiums.
12 on the BE ASSET MANAGERS list with $428 million in assets under management), says investors should stick with intermediate bonds
, which have a maturity of three to seven years, for the moment.
Although some are counseling that intermediate bonds
are not a
You would think that with interest rates being so low, you'd want to invest in longer dated bonds because they'd pay more.
Some are counseling that intermediate bonds
are not a good investment in today's market because interest rates have only one way to go -- up," he states.
He suggests that Thomas place some of his money into mutual funds that have intermediate bonds
or corporate bonds for a mix that is 70% to 80% stocks and 20% to 30% bonds and cash.
3rd Quarter Commentary Municipal rates dropped slightly during the third quarter, with long and intermediate bonds
turning in a 20 basis point and 10 basis point decline, respectively.