7 Reasons to Bulk Up on Bond Investments
Include fixed assets to smooth out your investment portfolio’s volatility
By Barbara Friedberg, Contributor May 23, 2019, at 1:01 p.m.
Having bonds in your portfolio can help reduce risk. Stocks are front page news, typically pushing bonds to reside in the recesses of the investment conversation. But bonds and fixed-income investments hold a place in the investment sphere. Loans to corporations, municipalities, and governments in the U.S. and internationally offer investors an income stream and provide entities with funding. These loans are bonds, which pay regular interest or coupon payments to the owners. “There will always be a place for bond investments for most investors. Bonds provide diversification from stocks and hard-asset investments, providing a steady source of income in many cases under most scenarios,” says Andrew Aran, partner at Regency Wealth Management. Here a few reasons to bulk up your bond investments.