Yesterday you read that the coronavirus was causing panic in markets, sending stock prices plummeting. Below you can see that, while DJIA stock prices fell 3.54% in yesterday’s turmoil, bond prices (as measured by the Ryan/NASDAQ Laddered Treasury Index) rose 1.05%, a difference of 4.59% over stocks.
If you don’t understand the value of bonds, this is it. Bonds are a counterbalancer in your portfolio against the volatility of stocks.
Bonds will always matter to you, especially when the going gets tough.
If you are just beginning to invest in bonds, consider a laddering strategy. And if you haven’t considered owning bonds in your portfolio, get started today.
Read my entire series, Coronavirus Infects Stock Market here.
E.J. Smith - Your Survival Guy
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