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YUP, to the broad message as related to investing, period. For those who do not understand and care not to learn; the article is also a note of caution as to those who may choose some of the very narrow focused etf's or indexes. Do the home work for a decent manager(s) operating an active managed mutual fund to afford some protection; be it equity or bond.
I would not even think about going near the THOUGHT of adding some of that stuff to my portfolio, cuz I'm not a pro. It's risky enough just being in the stock and bond market, period----- because Uncle Sam is steering us there by keeping interest rates at near zero. Buying a CD these days is like shooting yourself in the foot. But for the sake of safety and security, many of us must do so, REALIZING that the amount "invested" in a CD will most assuredly not keep up with inflation. It's a gambit some will take, and they can't be faulted for it.
I think that the warning is primarily geared towards exotic products, but I think there should be also some discussion regarding investors piling into yield-producing assets looking primarily at yield and not paying enough attention to valuation. I understand people's need to seek out yield, but the way things are, I tend to think this could certainly lead to a yield bubble to some degree.
Comments
YUP, to the broad message as related to investing, period.
For those who do not understand and care not to learn; the article is also a note of caution as to those who may choose some of the very narrow focused etf's or indexes.
Do the home work for a decent manager(s) operating an active managed mutual fund to afford some protection; be it equity or bond.
Regards,
Catch
http://www.fool.com/how-to-invest/personal-finance/savings/2012/02/07/the-only-smart-place-to-put-your-money.aspx
personally, I rather take a little more risks and have more munis/private bonds - better yield than 0.9% annually