This article was syndicated by Syfe in partnership with PIMCO.
Are you seeking a reliable source of passive income amidst the current market volatility? Bonds might be the perfect answer, even if their recent performance has left you sceptical. In this article, we tackle common objections and reveal why now is an excellent time to embrace the opportunities bonds offer.
Objection 1: Bonds underperformed in 2022 and there’s still a lot of market uncertainty. Why should I invest in them now?
Response: Bonds faced a tough year in 2022, but this was an outlier in the broader context of market history, where bonds have played a key role in portfolio diversification.
While it’s true that bonds faced a tough year in 2022, Chart 1 shows this was an outlier in the broader context of market history. It’s rare for stocks and bonds to both have negative returns in the same year. It’s also worth noting that over the past...