It’s been several weeks since I looked at the Q&A inbox and a lot of mail has piled up. So let’s get right to it.
Why keep bonds?
Q – Why keep bonds in a portfolio when we anticipate interest rates to go up in 2017? – Peter M.
A – Reduced risk is the primary reason. Fixed-income securities like bonds provide a safety net in the event of a stock market crash. A portfolio that is 100 per cent exposed to equities is going to experience heavy losses if the market crumbles. Quality bonds rarely produce a negative total return in any given year and when it happens the losses are usually small.Report Typo/Error
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