FYI: For many investors, fixed income allocations are the last thing on the list. Even enthusiastic individual investors are often obsessed with following hot trends, new IPOs or debating the benefits of smart beta.
But when it comes to their bond allocation, they use a quick rule of thumb and move on. Even financial advisors that we know are deep thinkers and great at math often just “buy the Agg” (the Bloomberg Barclays US Aggregate Bond Index) and maybe augment that with an ETF to capture, say, the junk bond market, or international debt.
But that’s a mistake for a lot of reasons. Consider what’s happened just this year with interest rates.
Regards,
Ted
https://www.etf.com/sections/features-and-news/what-do-about-bonds
