Bond Investment Strategies
Smoothing Out the Performance of Equity Investments
Because share market returns are sometimes more volatile or changeable than those from fixed income securities, combining the two asset classes can help create an overall investment portfolio that generates more stable performance over time. Often but not always, the share and bond markets move in different directions: the bond market rises when the share market falls and vice versa. Therefore in years when the share market is down, the performance of fixed income securities can sometimes help compensate for any losses. The right mix of shares and fixed income securities depends on several factors. To learn more, read Asset Allocation.