Ok so after my rant about diversification I’m sure some of you scrolled down to see what my holdings are (and to judge if I’m diversified or not). I got a few emails from people who noticed that I have very little fixed income and no technology companies. Well you asked for it so here it is...my thoughts....I don’t hold any technology companies for the simple reason that I think most of them are over-valued and don’t have a sustainable competitive advantage. A lot of tech companies seem to be trading on the next-big-thing, take the Motorola Razor for example, it was all the rage and now apparently it’s a piece of crap, it’s the reverse for Apple, they went from piece of crap to cool and I’m sure that if something better and “cooler” came out their ipod or iphone would go from cool to crap again---don’t think so? find someone with a teenager and ask them. I on the other hand think banks are cool, insurance is trendy, and nothing is “awesomer” on a nice winter day than oil and pipelines, not to mention a building that houses seniors (CSH.UN)….Radical Dude!
As for fixed income…well that ones easy…
1. The rates sucks
2. I’m young (I can ride the stock market ups and down)
3. Longer term I think high quality dividend paying blue chips will beat the yield of any 10 year bonds (not including junk bonds).