Quote:
Originally Posted by Cornstock
I have a taste for throwing in some fixed income, or at least equities that pay strong dividends (check out VYM by Vanguard). When you reinvest proceeds during a market downturn you can strongly improve your dollar cost average over the long turn. VYM has the added benefit of performing well in a bull market as well because it's all large cap.
If y'all want, I can dig up some nice textbook type info why this is a good idea in your portfolio.
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What are some examples of good fixed-income holdings? I've got this image that they all pay 1 percent or so, so I avoid them, but maybe I'm wrong.
I've put a bit of money into some things like REITs and holding companies that I find interesting. You don't really expect the stock to appreciate, but they throw off huge dividends in the 5 to 8 percent range. I've been treating them kind of like fixed-income, even though I know they're not.