After the abnormal behavior of muni funds near the end of Feb 2008, I had reservations about the recommendation of using muni funds as the safety anchor of a portfolio. It appears that because muni bonds are relatively illiquid, their prices (NAV) could be quite volatile, as evidenced by the price drops when hedge funds [...]
There are two rather enlightening posts on the Bogleheads forum today. Both dealt with the risk of holding individual stocks but from different angles: one from the employee viewpoint, the other from the “mad” or “fun” money viewpoint.
(1) The danger of holding company stock – by Taylor Larimore
Last year investment bank Bear Stearns stock was [...]
Despite the generally bad showing in the equity markets in February 2008, my portfolio managed to eke out a small positive gain of 0.17%.
As we can see from the figure below, it was held up mostly by my allocation to precious metal and mining equity (up 12%) and emerging markets and EAFE small caps (both [...]
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