Hi Toof, Re: High Income components...............
I had for years only owned govt bond funds. They did what I wanted - paid the bills - but had very little in any other potential.
I decided to diversify into corporate bonds and then real estate trusts as far back as 1998-1999. In a very glacial manner I started this process. Instead of selling off the bond fund I owned, I just added the other components as they became reasonable and I had cash. In late 1999 I'd added significantly to the real estate side but hadn't found a proper vehicle for the corporate side. I was still buying individual bonds of companies at that time.
As the early part of this decade started off as a rough patch for regular common stocks, the price of bond funds was bid up from their cyclical lows of 1999 and so I had very little chance to add to my positions. As time went on these investments continued to do well way past the time when I thought they'd cycle again.
As companies started to come out of the early recession of this decade, I switched from govt bonds to corporates to ride their tide of good fortune. That continued to this year.
I now have a mix of all three: corporate bond funds, govt bond funds and real estate funds (mostly REITs involved). While not quite 1/3 each, I'm working my way in that direction for the long run.
Best regards, Tom
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