Why hold bonds in a rising rate environment?
Amid concern about the outlook for interest rates, many investors are questioning the value of holding bonds as part of a diversified portfolio. The thought is that if interest rates are rising, portfolios should have a materially lower allocation to bonds, or that cash is a better alternative. Yet investors should look beyond short-term movements and consider the longer-term rationale for having fixed income within a portfolio.
June 2017 By Clive Smith