For the past week, when major stock indices suffered the worst week since the financial crisis, bonds rallied.
Vanguard Total Bond Market ETF (BND)The low correlation with stocks is the main reason bonds are included in portfolios – diversification.
Of course, not all bonds are equal. The high yield bonds did not perform as well and had characteristics similar to stocks.
SPDR High Yield Bonds ETF (JNK)So in this post, let us have a look closer at bonds and learn how they provide some stability in fearful times.
Simplified Definition of BondsBond is
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