– Interest rates have risen accordingly to more normalized levels. Although this reflects a strengthening economy, it has made for a difficult two years for high-quality fixed income.
– Although investors may be questioning the worth of high-quality fixed income in their diversified portfolios, we maintain that it is vital to help manage equity market risk in the face of higher volatility.
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Source:
LPL Research, Bloomberg 07/25/18
Important Disclosures:
Based on Bloomberg Barclays Aggregate Index.
Performance is historical and no guarantee of future results. The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security.
Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values and yields will decline as interest rates rise, and bonds are subject to availability and change in price.
The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS (agency and non-agency).
All indexes are unmanaged and cannot be invested into directly.
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