Tuesday, July 7, 2015

WSJ: Time For A Bond Fund Checkup

BY SIMON CONSTABLE

Given the expected rise in interest rates, does your portfolio still need a healthy allocation of bonds? Probably yes, according to the experts.
Many agree that the security and diversification bonds offer shouldn’t be spurned just because the direction of rates could be changing. But, depending on the investor, now may be a good time to adjust the size of that allocation and its contents, with regard to lengths of maturities and levels of risk.
“Fixed income is always a good foundation for a portfolio,” says Eddy Elfenbein, Washington, D.C., author of the Crossing Wall Street blog and newsletter. “Security and safety.… Each month and quarter there is a regular check from the coupons.” Read more here

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