Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices, 4th Edition

CHAPTER 9

Fixed-Income Indicators

One of the most important themes in the market to keep close track of is the fixed-income area. At this stage in my life, it plays a major part in my investment strategy. Don't get me wrong—I haven't turned chicken, and I do not believe the college professors who tell you the percentage of your portfolio in fixed income should be equal to your age. I'm 65 right now, and that has nothing to do with how much of my portfolio is allocated to fixed income. I have been a good steward of my money over the years, and municipal bonds play a big role in how I invest. I use a client of ours, Skip Morton at RBC Wealth Management. He is, in my opinion, the best adviser for my municipal bond portfolio. Bonds are something I had no real interest in during my Wall Street career. I have been a stock-, options-, and futures-focused adviser. So when it comes to munis, I want the best help. I told him to always think of his mother. If he would put it in her account, then it's okay for my account. I was just kidding on that. I did tell him that he had a blank canvas and to paint the most beautiful picture he could paint on it. He has. For this portfolio I am mostly interested in a laddered effect where bonds each year mature, and actually pay me my money back, and then we reinvest in possibly higher rates if they have risen. This is the reason for a laddered portfolio. So it is high-quality bonds I want, and bonds that are pre-refunded, or insured or in a high-quality ...