Sunday, August 2, 2009

The Bond Ladder

From John Mauldin's weekly letter 'Outside the Box' [as blog], 'the Great Reflation Experiment' :

"A bond ladder is a very useful tool for most people. Holdings are staggered over, say, a five-year time frame, and maturing bonds are invested back into five-year bonds, keeping the portfolio structure in the zero-to-five-year range. In this way, some protection against a future rise in price inflation and falling bond prices can be achieved."

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