The 10 - year U.S. Treasury note is currently yielding 2.22 % (as of 9/25/2017, source: Bloomberg), and while it provides
diversification against equities, that's not a lot of income.
It was a good reminder of why most of us invest in bonds: to help provide
diversification against our equity holdings.
High yield hasn't given you quite
the diversification against equities that Treasuries have, but it also hasn't moved in lockstep with stocks either.
It was a good reminder of why most of us invest in bonds: to help provide
diversification against our equity holdings.
The 10 - year Treasury note is currently yielding 2.45 % (as of 1/31/2017, source: Bloomberg), and while it provides
diversification against equities, that's not a lot of income.
Put simply, high yield bonds might not provide sufficient
diversification against equity market risk.
The 10 - year U.S. Treasury note is currently yielding 2.22 % (as of 9/25/2017, source: Bloomberg), and while it provides
diversification against equities, that's not a lot of income.
Not exact matches
High yield can be a source of income and
diversification in a portfolio, but don't expect it to be your ballast
against equities.
Another way some investors might describe
diversification is by preservation of capital, perhaps through protection
against losses from
equities.
Perhaps this additional layer of
diversification to protect
against currency risk is unnecessary but I just don't feel comfortable having all US and Int» l
equity in USD.
None of this data argues
against the benefits of international
equity diversification over longer holding periods.