In September of last year, we argued an investor should accept schizophrenia for his greater good. Accept to split into three characters, not communicating with one another, each with individual objectives, a team of specialists, and investment horizon. We coined these three characters the Speculator, the Moderate Investor, and the Rentier.
The Rentier is neither a speculator nor a tactical asset allocator. They wish to stay rich – not get rich.
Last week, we highlighted an investment solution to the Rentier: The Bond-Like portfolio.
This week and next, we dig deeper into the mystery of Bond-Like.