BHK - Bonds: A Cash Look-Alike With A Potential Venomous Bite
This is the third posting in a series on the overall portfolio structure implied by a focus on a dividend-growth portfolio. A previous posting, “A Dividend-Growth Portfolio Isn't a Strategy; It's a Class of Assets,” (A Dividend-Growth Portfolio Isn't A Strategy, It's A Class Of Assets) presented the plan for the entire series on the topic.
Many investors treat bonds as if they are separate asset classes. As is discussed below, it is equally legitimate to view them as simply substitutes for the key assets: equities and cash. As substitute equities and substitutes