4 ms·
1. Bonds generally aren't there for returns, but to manage risk. When rebalancing (±5%) they end up being a form of 'dry powder' to buy equities during down tur
by throw0101a 5y ago
1. Bonds generally aren't there for returns, but to manage risk. When rebalancing (±5%) they end up being a form of 'dry powder' to buy equities during down turns.
2. While they may dampen returns (but also dips), one has to examine how much risk is actually needed to meet financial goals. Sure, more money is generally better, but not necessarily at the cost of other factors.