Asset Allocation Classification

[brokrken]

Maybe a stupid question. But, when you are looking at your asset allocation (Stocks/Bonds/Cash) where do you put preferred stock? I know it is a "stock", so save me the snide comments. But, when I think of asset allocation I think more like Equity/Fixed Income/Cash. Since preferreds are equity, but also provide fixed income, I was curious how you all classify it.

 

[pb4uski]

For AA purposes I would put preferreds in fixed income as IMO the cash flow charateristics and pricing/volatility are closer to bonds than to stocks. P.S. I don't own any preferreds but am very familiar with them.

 

[brokrken]

For AA purposes I would put preferreds in fixed income as IMO the cash flow charateristics and pricing/volatility are closer to bonds than to stocks. P.S. I don't own any preferreds but am very familiar with them.

Thanks, pb, that's the way I was leaning, but was curious how others saw it.