Dividend Stocks Can't Take The Place Of Bonds

We are all very well aware that the new normal of increased volatility and low interest rates forces us to reconsider our investment strategies. I have been reducing my bond holdings and boosting my dividend stock holdings. However, I was reviewing what is possible with bonds and it slowed my migration away from Bonds, so I thought I would look at another view of Bonds.

My basic thought was: Buy and hold diversified stocks or ETFs and be very careful about expense ratios for any stock mutual funds or ETFs. We recently looked at the Forbes low cost ETF selection and concluded that was worth a look. When it comes to bonds, however, I think I am willing to pay for the best of the best to actively manage bond allocation as this is an area where we are in an undiscovered country.

Source: Seeking Alpha

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