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So what happens if we add bonds to our long-term portfolio to act as ballast to the equity exposure?
For starters, the euro has been weakening for only about seven months, a short period on which to base long-term portfolio decisions.
But for those who can tolerate risk, he suggests investing 5percentto10percentcent of a long-term portfolio in such funds.
But for people, retired or not, who understand the market, putting a small part of a diversified, long-term portfolio into a high-yield fund can provide "more kick," said Miriam Sjoblom, Morningstar's lead bond fund analyst.
Fossil fuel companies fail to account for carbon asset risks, such as stranded assets of coal and oil, a long-term portfolio risk due to consumer demand with the increase in other energy sources such as gas, solar and wind.
But the one thing that we all ought to be able to agree on is this: The point of any long-term portfolio for the vast majority of investors is to earn whatever return you need to meet your goals while taking the least amount of risk.
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For those who invest in bond funds, that means going from long-term portfolios to intermediate- and short-term funds.
Sticking with intermediate-term TIPS funds, instead of long-term portfolios, may reduce but not eliminate this risk.
While many clubs invest for the academic year, the young investors often have their own long-term portfolios.
As the credit storm has raged in recent months, insurance companies like A.I.G. have been better positioned than the nation's banks and brokerage firms to weather it because accounting rules do not require insurers to mark the investments held in their long-term portfolios to market.
Why pay a management fee to own U.S. Treasurys in your long-term portfolios?
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