Oops!  Sold the bonds too early.  Jobs numbers were terrible and rates are heading lower immediately.  I am not sure that lower rates are going to fix anything as the issue is more structural.  Whether it is regulatory uncertainty coming from our leadership or global uncertainty from Europe, investors are increasingly risk averse and just looking to take their ball and go home.  Government bonds are just the default investment and will benefit.

My choice currently is to maintain a high level of cash rather than government bonds.  My mix is 45% equity, 21% credit and the balance in cash.  The equity feels like an overweight position because I wake up every day losing money :(   but it is right on my benchmark.

Staying focused on value can be very trying.

A friend shared a joke with me:

Q:   What is the definition of a long term investor?
A:    A trader who is undewater

As all good jokes have elements of reality, this can be painfully true.


UPDATE:
I updated the performance page.  I underperformed the benchmark because I am underweight government bonds in the 5-10 yr range (45% of the benchmark).   From an equity perspective, the portfolio has outperformed the S&P which is my equity benchmark.  So overall, disappointing because it is never fun to lose money, but investing is rarely a straight-line prospect.