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Said all that to say, and this could be controversial, and I don’t say this often, or any at all, but in my expert opinion, once one falls below a liquid net worth of $500K USD, Fixed Income is a waste of time.
Especially now.
So let me explain more of my thinking. Generally speaking, (because everything is relative), one shouldn’t be buying ONE bond for less than $100K/$200K FV because the custodians usually has issues with smaller blocks. Unless your broker (individuals I speak of) is a market maker
i.e. can find someone else to sell your bond to, then USUALLY you’re stuck with it. Suppose you need the money in a jiffy? Taking that to its logical extent, if we say one should diversify and has $200K of cash, wouldn’t $100K of one bond be too concentrated? Taken further
If ones NET WORTH is 85% tied up in a single asset, like let’s say, a house. Is that appropriate diversification? Suppose there’s a real emergency. Unfortunately, asset allocation sometimes tend to follow the customary path because most Advisors don’t buy stocks for themselves or
others. So by virtue of that one is losing out on (1) a diversification tool and (2) the asset class bearing the most upside. I hear people attempt to tell me about my field, which is fine and understood because everyone earns money right? Fair play but as Gary said last week or
whenever, it’s nowhere near as easy as it looks and VERY demanding. We speak of risk. Appropriate. Well, we are closer to the end (depending on who you ask) than the start of the most outlandish event anyone reading this in the next 10 years will live through. A pandemic.
The US market is ABOVE pre-COVID levels, which more or less started 9 months ago. Where does 9 months fit in a 7-year investment window, for argument sake? February 12, 2020, the DJIA was 29,232.19. It fell to 20,704.91 on March 18, 2020. Today it closed at 30,046.37.
The FDA approved PFE’s vaccine moments ago. I said all that to say, if you emerged out of COVID still holding your stocks, which I can’t see why you wouldn’t have since your Advisor should have ensured you have cash in addition to stocks, you’re now an investor. Congratulations
Risk is perceived. Difference with stock is, you can get cash in 3 days, can only lose what you put in, and the upside is limitless. Show me a comparable asset class, please. With respect 
And, the JSE has not rebounded to pre-COVID levels.
