Excerpt from Marketwatch article, June 21, 2006
Chuck Jaffe, a senior market columnist for Marketwatch.com, wrote a very good article about how traditional income investors need to diversify their approach beyond simply buying and holding bonds:
".....there is a growing school of thought that [inflationary times] call for some alterations to traditional thinking, so that the conservative, income-oriented investor looks for cash-flow from other sources, notably asset classes like real estate investment trusts, utilities, corporate, high-yield and international bonds, market-neutral hedge strategies and more."
"The idea is to have at least a portion of an investment portfolio where the income stream is regular, and the principal growth keeps pace with inflation."
"For a lot of investors, it will mean trying new things; they won't be ripping apart their portfolio but they will make some changes overall to their portfolio. ... If they don't do it, I'm afraid they will feel let down by just holding bonds alone."
For the full article in Marketwatch.com click here.
For more on income securities, including real estate investment trusts, click here
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