What Flavor is Your Bond Portfolio?

Posted on 07.19.13

Author: Jeremy K. Kuhlen, CFP®, CRPS®, AIF®Director – Private Client Practice
CapGroup Advisors, LLC

Richmond Financial Planning The 30 year bull market for bonds has ended. The bond market has taken a beating recently and many investors are opening their investment statements and wondering “Should I still own bonds?”

The short answer is – Yes; bonds play a significant role in creating a diversified portfolio. Bonds tend to provide a cushion to the higher volatility of stocks in a portfolio and smooth out the ride. In its simplest form, the thought process is: When Stocks go UP / Bonds tend to go DOWN and when Stocks go DOWN / Bonds tend to go UP. Building a diversified portfolio is a prudent approach to weathering the ups and downs of the markets and is imperative for individual investors seeking to maximize their odds of funding their future goals. Read more.