Bonds in a Rising Interest Rate EnvironmentMarch 7, 2019
Including bonds in your investment mix makes sense even when interest rates may be rising.
- Bonds’ interest component, a key aspect of total return, can help cushion price declines resulting from increasing interest rates.
- Bonds can dampen the overall volatility of a stock-heavy portfolio because bond prices usually fluctuate less than stocks.
- Diversification is as important for your bond portfolio as it is for your stock holdings.
Of course, diversification cannot assure a profit or protect against loss in a declining market. Past performance cannot guarantee future results.
- Learn more about the appropriate asset allocation for your investment goals.