Which is not a good bond investment strategy? As one gets closer to his retireme

ID: 2638118 • Letter: W

Question

Which is not a good bond investment strategy?

As one gets closer to his retirement, he should decrease his portfolio weight on stocks and increase the weight on bonds.

If one is in high income tax bracket, he should invest in munical bonds.

If one thinks the Fed will increase the Fed funds rate, he should sell long-term bonds.

If one is extremely risk tolerant, he should invest 100% in stocks and 0% in bonds.

As one gets closer to his retirement, he should decrease his portfolio weight on stocks and increase the weight on bonds.

If one is in high income tax bracket, he should invest in munical bonds.

If one thinks the Fed will increase the Fed funds rate, he should sell long-term bonds.

If one is extremely risk tolerant, he should invest 100% in stocks and 0% in bonds.

If one thinks the Fed will increase the Fed funds rate, he should sell long-term bonds.

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