As 2005 - 2007 progressed, it was difficult to keep
a balanced corporate bond portfolio, because almost half of all issuance was from financials.
Not exact matches
Fixed income provides the stability in a
balanced portfolio, so your mix of government,
corporate, short and long
bonds needs to be chosen carefully.
Mike probably owns our
Balanced Growth
Portfolio which does have 3
bond funds in it; emerging markets, high yield
bonds, and high - grade
corporate bonds.
The
portfolio of taxable
bonds includes U.S. Government securities, mortgage - backed securities issued by the Government National Mortgage Association and
corporate bonds diversified to produce a reasonable
balance of risk and a stable source of earnings.
For the sort of medium term horizon you mention, a
balanced portfolio weighted more towards high grade
corporate bonds but with at least 20 % stocks would be a safe bet.