Unforseen

soddy1979 Wrote:
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> If the client cant stomach capital losses, then I
> think short duration investments are prudent. You
> reconcile this to the size of the portfolio, by a
> reduction in their ability to spend.

So the answer is duration based, but even shorter duration is exposed, correct?


> Needing more money (or a higher return) is not a
> valid reason for taking on increased risk.

I'm assuming your making this statement based on the idea that other non bond investments will be riskier so bonds are the least of the "risk evils" despite the price risk?