Why Keep Bonds At Your Portfolio Party?

Stocks might be driving you crazy with their manic ups and downs. But there is no doubt; they’re still the life and soul of the party. No matter what the economy tosses at the markets, stocks continue to deliver. Despite the COVID-led market bath in March, the S&P 500 gained about 7.3 percent from January 1st to October 7, 2020.

That’s on top of 31.2 percent last year. All told, U.S. stocks have gained about 370 percent since January 2009. That’s a compound annual return of 14.13 percent.

Bonds, in contrast, are like uninvited guests. Twenty years ago, they eked out decent interest. But now they slump at their stools and seem to barely breathe.

This has many people asking, “Should I own bonds at all?” https://assetbuilder.com/knowledge-center/articles/why-keep-bonds-at-your-portfolio-party

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School and Millionaire Expat: How To Build Wealth Living Overseas. My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.