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Safe Ways to Boost Yield?

Saturday, April 10, 2010 - 8:09 AM
From the Wall Street Journal
The reality is that the only way to boost yield is to take more risk. But if investors play it smartly, they can improve their returns without having to buy subprime mortgages - and they will know all the risks going in.
The article describes an "advanced" strategy to boost yields by creating a portfolio of Treasuries, TIPS, Municipals, short-term corporates and stocks. It also describes a "simple" strategy with less risk that includes bank accounts, I Bonds and short-term bond funds. A fund manager proposed the "advanced" portfolio. It seems "investment experts" rarely include bank accounts as a sizable part of one's portfolio.
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Ken TuminKen Tumin5,473 posts since
Nov 29, 2009
Rep Points: 125,800
1. Saturday, April 10, 2010 - 11:48 AM
The "investment expert" that recommended that strategy was William Bernstein. 

http://en.wikipedia.org/wiki/William_J._Bernstein

If you know his work it wasn't just willy-nilly recommended.  It was more than likely back tested via a Monte Carlo simulation.  Read his books available on Amazon.
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AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,964
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