FYI: As stocks continue to chug along and interest rates have lifted off from their recent lows and could climb higher still, now is a good time to revisit bonds’ role in a diversified portfolio. Here I will look at the degrees of diversification potential offered by various segments of the bond market. Then I will share a peek at recent trends in exchange-traded fund flows among the largest categories of fixed-income ETFs to assess how investors are positioning themselves to cope with the confluence of full stock-market valuations and the possibility of further interest-rate increases.
Regards,
Ted
https://www.morningstar.com/articles/882878/some-bonds-are-better-diversifiers-than-others.html
