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A Good time to Check Your Bond Portfolio
October 01, 2014 at 19:00 PM EDT
Bond market and currency volatility have been on the rise lately, leaving many investors wondering what they should do in response. My take: I’ve been advocating for a while that investors should rethink their fixed income exposure, given that bond investing today is very different than it was in the past. It’s never accurate to describe investing — whether asset allocation or beating a benchmark — as “easy.” That said, it’s fair to say bond investing used to be “easier.” For more than three decades, bond managers had the enviable advantage of consistent tailwinds: falling inflation and declining real rates. While bond markets would still suffer the occasional gyration, those dislocations occurred against the backdrop of a multi-decade bull market and steadily declining volatility. Some of those conditions, notably low inflation, remain in place, but the overall environment is less hospitable than it was a decade ago. Today, bond investors […] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Bond market and currency volatility have been on the rise lately, leaving many investors wondering what they should do in response. My take: I’ve been advocating for a while that investors should rethink their fixed income exposure, given that bond investing today is very different than it was in the past. It’s never accurate to describe investing — whether asset allocation or beating a benchmark — as “easy.” That said, it’s fair to say bond investing used to be “easier.” For more than three decades, bond managers had the enviable advantage of consistent tailwinds: falling inflation and declining real rates. While bond markets would still suffer the occasional gyration, those dislocations occurred against the backdrop of a multi-decade bull market and steadily declining volatility. Some of those conditions, notably low inflation, remain in place, but the overall environment is less hospitable than it was a decade ago. Today, bond investors […]
