Money Roundup: Don't Ditch Bonds Edition

by Michael on Apr 14, 2013

Worried about the bond bubble bursting? Well, when asked how investors should manage their bond portfolios in a low rate, high risk environment, Tim Buckley (Vanguard’s CIO) said the following:

“When rates rise, they could go up quickly. We worry about people suddenly saying, ‘OK, it’s time to get out of bonds, rates are up. I saw a short-term loss in my bond portfolio, so I’m going into stocks, or into cash.’ That behavior is rarely rewarded.

Remember that you’re investing in bonds for a reason: because they often move opposite of where the stock market is going. They help mute the volatility of stocks. You should own bonds with a long-term approach. Set your asset allocation and stick with it, and it will prove to be successful over the long run.”

Set your allocation and stick with it. Solid advice.

And now… Here are some articles that caught my eye this past week:

That’s it. Hope you’re having a great weekend.


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