The past year was challenging with high interest rates and inflation, recession fears and a war which set the stage for nervous investors and downward markets. While all the major equity and fixed income asset classes were down, alternative “enhancer” asset classes had mixed results, supporting a well-diversified portfolio. In addition, a tilt towards quality and value further protected portfolios from experiencing the full decline of the markets.
This year, interest rates have increased dramatically, leading to significant declines in bond prices. You may be most aware of this if you own a bond mutual fund or ETF.
Laura and Steve interview Jason Stuck from Northern Capital an expert on bonds.
In this video Steve and Laura discuss the state of the economy and what we may expect from investments in the near future.
We provide a brief overview of some types of bonds and some bond-like investments to avoid.
Bonds are an important part of your portfolio even in a low-rate environment. Here we begin a multipart discussion of bonds with the basics – why they are important.