Bond Fund alternatives?
What is your suggestion as an alternative investment to bonds at the current time? Currently I have a traditional portfolio mix of 65% stocks / 35% bonds in mostly index type funds. I understand the reasoning of each as part of an overall investment. However I am tired of seeing the performance of my Bond funds basically do nothing or actually go down a little in value. I am trying to figure out another investment option that can provide some type of return without putting additional risk into the stock market. Trying to keep my overall portfolio at about the same 65/35 balance. So far I am not finding anything real good and thought I would get your opinion. Thanks
Terry Says
That’s the multi-trillion dollar question that ALL investors are asking now. And remember, as interest rates rise, bond prices will fall — especially longer dated and poorer quality bonds. Just google “60/40 investments” and you can read dozens of “expert” opinions on how to manage that question. (And do you have some dividend-paying gold stocks as a hedge against inflation?) And do you have some “cash” — liquidity, money in the bank, just so you don’t panic in a big market move?
