No. of Recommendations: 10
The reason I like treasuries is that they go up in value during stock market meltdowns, which is exactly the time that I would want to sell them to buy something else. Other bonds are not as negatively correlated with the stock market, although they do have higher yields.
Just a couple of reminders:
* In moments of market ructions in the last couple of years, this rule of thumb has not been particularly reliable. Quite the reverse. Sometimes it works, sometimes it doesn't.
* Plus, bear in mind the potential situation that the chaos you're trying to avoid may involve a fall in the USD.
I'm not saying not to do it, just rounding out the list of things to consider.
The only fixed income I own is some WIP. It's the safest one-click purchase I have discovered: a broad basket of various government issued inflation protected bonds, ex US. Blend with TIPS (or the fund TIP) to taste, if you want US dollar exposure as well.
Jim
