Buying cap-weighted portfolios whether stock or bonds is like buying the big dinosaurs because you expect them to survive because of their size. Big is supposed to be good with companies. Big is good with corporate debt even though they may have higher leverage. So what about Bank of America? GM? Merrill Lynch? Big is not good yet you have more exposure to bug when you buy a cap-weighted index. This may not be the way to go if you want to be a passive investor. Buy more equal weights regardless of the asset class.
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