TH:
The next time your dad makes an appointment with you to have some Revolution, rubbed on the back of his neck, ask him to elaborate about the investment climate from the early 60's through the early 80's.
You can read about it, but you really can't get the full effect of that type of inflationary atomosphere unless you were there.
People act different, the markets act different.
I posted this because you were pondering bonds. Actually, if we get anywhere near the type of inflation we had for almost 20 years, .25 and .50 difference is insignificant. Probably the biggest deal breaker that could happen to retirees.
By the early80's, after being drawn and quartered by some bond purchases, I had a never again attitude.
But then, in the mid eightys we had a generally great atomosphere for bonds, with a steady march down in interest rates. Bonds for the last 20 years has been a pretty fair place to be.
For the first time in a long time, I am concerned about bonds again.
I have short-term bonds in my assett allocation, but chasing yields at this time of the cycle would scare the hell out of me.
Methinks it is better to keep your powder dry, take your lumps on the small difference between long and short, and (I hope this doesn't happen), be ready to go long when the interest rates warrent it.
Your "not investment guru, but scar tissued" buddy, Ex-Jarhead