Should You Maintain an Allocation to Bonds When Current Rates Are Low?
The performance of bonds is related to movement in interest rates. Those two phenomena are related—that much we know. How tightly they are related is a pertinent question at this point in time.
This article reviews how interest rate movement and bond returns have been related to each other since 1948. In addition, bond performance is considered in the context of an overall, multi-asset portfolio and not simply as a stand-alone asset. Finally, the performance of various portfolios in the “distribution phase” is examined, the phase when money is being systematically withdrawn from a portfolio. Bonds are typic
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