Matt Krantz of USA Today, writes in this article that it was well understood by many that the investment returns for government bonds were not to be as good as they have been, particularly in 2011. He asks, “When is this much-anticipated “great correction” coming?” Well, it didn’t happen in 2011. In fact, 2011 was a very good year to be holding bonds.
All our clients hold some amount of bonds investments in their portfolio. We recommend holding bonds as a way to stabilize the portfolio from the volatility in the equity portions of the portfolio. Did we guess ahead of time that 2011 would be a good year for bonds? No. Did we believe that bond returns will provide stability in the portfolio? Yes. Did our clients benefit from having bond positions in their portfolios? Yes. Do we know what investment returns bonds will provide in 2012? No. Will our clients have some portion of their portfolio in bonds? Yes.
Are bonds headed for a fall? (USA Today)
January 18, 2012
Matt Krantz of USA Today, writes in this article that it was well understood by many that the investment returns for government bonds were not to be as good as they have been, particularly in 2011. He asks, “When is this much-anticipated “great correction” coming?” Well, it didn’t happen in 2011. In fact, 2011 was a very good year to be holding bonds.
All our clients hold some amount of bonds investments in their portfolio. We recommend holding bonds as a way to stabilize the portfolio from the volatility in the equity portions of the portfolio. Did we guess ahead of time that 2011 would be a good year for bonds? No. Did we believe that bond returns will provide stability in the portfolio? Yes. Did our clients benefit from having bond positions in their portfolios? Yes. Do we know what investment returns bonds will provide in 2012? No. Will our clients have some portion of their portfolio in bonds? Yes.
Read the full article here.