Bond Investing – Allocation Guidelines to Reduce Investment Risk

For most investors, bonds are just one thing – ballast. Bonds can work well for income seekers, and, in the hands of an adept speculator, they can beat the stock market for long stretches. But this is not how most investors use them. Most buy and hold, rather than speculating.

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Investing in a Cruel World

Cisco CEO John Chambers says this recession marks the “toughest economic challenge of our lifetimes.” American households have lost more than $13 trillion in wealth. Some have lost everything because of excess debt or fraud. There is absolutely no doubt that the world can be a cold and cruel place. After the collapse of Lehman Brothers in September 2008, millions fled from risk of any kind. Money market funds based on U.S. treasury obligations closed to new investors because of a flood of incoming money. Stock and bond markets plunged. The fear, as we teetered on the brink of an economic abyss, was understandable. But history tells us that it usually is a mistake to panic, follow the crowd and run away from risk. A better strategy is to patiently look for opportunities, ways to recoup losses and build a richer future. Based on my 50 years of investing in good times and bad, I have drafted five key rules for “Cruel World Investing,”

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Precautions to Take When Investing in Land

In any investment you take a risk; with land investment the risk lies with the development of your land. With the current credit crunch many house builders are cutting the quota of sites by 10-20% on last year, yet conversely there is a lack of affordable housing in many urban areas and with increasing population numbers we need houses to be built.

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