premise:
I’m not as good to suggest my portfolio strategy, and I don’t want to do disinformation, so all the notions you will hear have been taken from the intelligent investor, it’s very big book, but I suggest to read it if you, as me, are interested of the investments.
So let’s going to see, what is for Ghram how should be done a portfolio for a defensive investor.
For Ghram an Intelligent defensive investor should have funds between HIGH-GRADE bonds and ordinary HIGH-GRADE shares.
Him shouldn’t have less than 25% or plus than 75% of fund in ordinary shares, and that consequently have between the 75% and the 25% of portfolio in bonds.
When to raise shares?
The most valid reason to increase the percent of the shares can be the appear bargain price levels, but in prolonged market price.
When to raise the bonds?
In the opinion of the investor, if the level of the market is too high.
“An investor shouldn’t have more than 50% in shares, unless you have great confidence in the stability of your equity position and are confident that you can safely tolerate a market decline comparable to that of 1969-1970.“
Maintain as fair a division as possible between stocks and bonds