Fixed-income investments are also an important part of long-term investment success.   Used to generate income and provide stability, DMWB believes that a diversified portfolio of fixed-income securities, with a laddered maturity structure and an average maturity ranging from three-to-five years, will help to offset any short-term equity market volatility.

We invest in virtually all types of high-grade, fixed-income securities including U.S. Treasures and agencies, corporate notes, bank Certificates of Deposit (CDs) and municipal bonds.  Maturities are generally limited to 10 years to avoid longer-term interest rate and inflation uncertainty.  Tax-free municipal bonds may be used for individuals when tax-free yields are attractive relative to their tax bracket.

We take a buy-and-hold approach to bond investing, emphasizing market timing to take advantage of higher interest rates as they occur.  Sector analysis is also important.   Particular attention is paid to yield differentials between various instruments.   For example, at times, CDs and/or corporate bonds yield significantly more than Treasuries and are therefore more attractive investments.