A Not So Gentle Reminder Of Why You Should Own Bonds

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A Not So Gentle Reminder Of Why You Should Own Bonds

A Not So Gentle Reminder Of Why You Should Own Bonds by Matthew Tucker, CFA – BlackRock

If you’re invested in the market, you’re more than likely well aware of the recent volatility and its impact on your portfolio. But, as Matt Tucker explains, there is one investment that can help soften the blow.

You may have noticed that your investment portfolio has been bouncing all around lately. Depending on what you own, “bouncing” may be putting it mildly. If you own only stocks, the “bounce” may feel more like a “thud”. According to Bloomberg data, the S&P 500 Index – which is the leading indicator of large cap U.S. stocks – is down 9.64 percent this year, as of February 8. If you take out dividends, the price is actually closer to -9.383 percent.