Saturday, August 2, 2014

Stock:Bond ratio's recent trend favors bonds, but the reason may not be what you think

The ratio shows a downward trend starting in July.  Bonds have not declined as much as stocks recently which is why the trend is downward.  This is why bonds belong in very portfolio since they are less volatile than stocks and buffers the portfolio when the inherent volatility in stocks, the ups and downs, shows in performance.



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