Sentences with phrase «grade bonds and cash»

To prepare, add investment - grade bonds and cash to your portfolio as needed to help reduce its volatility.

Not exact matches

Investment grade bonds offer income with very low probability of default and reversion to cash at maturity.

Income Investing: The idea behind income investing is to provide most or all of your cash flow needs through reliable dividends from stocks and reliable interest from investment grade bonds.

So if you had taken the advice of the bond doomsayers, say, five years ago and fled to cash to wait things out until bond yields ticked up, you would have likely earned well below 1 % annually on your money vs. an annualized 4 % or so in a broadly diversified investment - grade intermediate - term bond fund.

It is far better for most people to work hard in areas of the economy that are being rewarded, and invest excess cash in a mix of stocks, long - dated investment grade bonds, money markets, and a little gold.

A valid concern that arises is what happens if investors do decide investment grade bonds should no longer be part of their diversified investment portfolio and start instructing their bond fund managers to sell their holdings and return their cash.

Some of those risks include general economic risk, geopolitical risk, commodity - price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high - yield bond exposure, noninvestment - grade bond exposure commonly known as «junk bonds,» index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions, and large cash positions.

The diversified portfolio is based on a 5 % allocation to cash, 25 % allocation to investment grade bonds, 5 % allocation to municipal bonds, 20 % allocation to S&P 500 Index, 10 % allocation to small caps, 5 % allocation to commodities, 15 % allocation to international equities, 5 % allocation to emerging markets, 5 % allocation to REITs, and a 5 % allocation to alternatives.

Moderate growth / income investors who have been emulating my tactical asset allocation at Pacific Park Financial, Inc., understand why we will continue to maintain our lower risk profile of 50 % equity (mostly large - cap domestic), 25 % bond (mostly investment grade) and 25 % cash / cash equivalents.

Equities might be cheap relative to cash, but are still expensive relative to junk and low investment grade bond yields.

Income, Yield and Duration: Investment grade municipal bonds on average have a higher coupon cash flow to bondholders than corporate bonds and that cash flow is exempt from federal taxation.

Domestic common stocks Foreign common stocks Domestic bonds (investment grade, not junk) Foreign bonds High - yield (aka junk) bonds Cash - type assets (cash equivalent) Longer - term fixed - dollar (guaranteed principal) assets Investment real estate Other tax - sheltered investments Convertible securities Gold and other precious metals Collectibles Other asCash - type assets (cash equivalent) Longer - term fixed - dollar (guaranteed principal) assets Investment real estate Other tax - sheltered investments Convertible securities Gold and other precious metals Collectibles Other ascash equivalent) Longer - term fixed - dollar (guaranteed principal) assets Investment real estate Other tax - sheltered investments Convertible securities Gold and other precious metals Collectibles Other assets

Money Market and Short Term Bonds, which comprise cash, checking, savings accounts, term deposits and less than one year investment grade bBonds, which comprise cash, checking, savings accounts, term deposits and less than one year investment grade bondsbonds.

We've structured this fund to have the flexibility to take advantage of the best ideas our global research platform produces while still retaining the characteristics of a high - grade bond portfolio — diversification of risk away from stocks and steady cash flow from the fund's holdings.»

You can generate this reliable cash flow through a combination of: interest on deposit - insured GICs and investment - grade bonds; reliable stock dividends; a sizeable cash and short - term fixed - income position; a bond or GIC ladder; and, purchasing annuities.