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
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.