This could lead to stock and
bond market volatility during the second half of this year that dwarfs what we've witnessed over the past two months.
This could lead to stock and
bond market volatility during the second half of this year that dwarfs what we've witnessed over the past two months.
Not exact matches
You could say that 2018 is still a young year and it's way too early to judge things, which is true, but the level of
volatility in both stocks and
bonds during February is making this year feel like we've lived through two full years already, and I think what the
markets are signaling is more likely to be a sea change than a blip.
Shorter duration
bonds, or
bonds that mature within three years, can potentially offer a portfolio stability
during market volatility.
Bond act as both a
volatility - minimizer for those investors that can't stomach a large stock allocation and a source of stability
during stock
market sell - offs for either spending purposes or liquidity for those that need to rebalance into lower stock prices.
While base rates kept at or close to zero for almost seven years and three massive asset - buying programs by the Fed have undoubtedly helped stabilize the US (and world) economy
during and after the recession that followed the global financial crisis, the continuation of expansionary monetary policies is now supporting a growing excess of global liquidity that has been distorting the
market signals sent by stock and
bond prices and thus contributing to the growing
volatility seen in recent weeks.
Including a core
bond fund in your investment mix may reduce your portfolio's overall
volatility — and can also help moderate your natural anxiety
during stock
market downturns.
During 2017,
volatility has been low — in stocks and in
bond markets, even in indicators of macroeconomic activity.
During times of
volatility and
bond market uncertainty, it's worth noting that 401 (k) investors shouldn't worry too much about what level of income their
bond funds provide.
Given the current low interest - rate environment, adding a high - yield allocation to your core
bond portfolio or investing in a multisector
bond fund may help increase your investment income — just remember that many of these types of funds still come with the potential for significant
volatility, particularly
during times of heightened economic and / or stock
market volatility.
Including a core
bond fund in your investment mix may reduce your portfolio's overall
volatility — and can also help moderate your natural anxiety
during stock
market downturns.
Bonds are sometimes also used by sophisticated investors
during times of stock
market volatility to preserve the capital values of their investments.