With the 10 year Treasury yield hitting 3% in April during a steady increase in interest rates to start 2018, we believe taking a look at several common misconceptions investors have with fixed income would be helpful. The article “4 Big Myths About Bonds” by Allan S. Roth on Financial-Planning.com does a great job reframing how an investor should view bonds and their role in a portfolio.
Index Performance | April | YTD | 1 Yr |
US Stock (Russell 3000) | 0.38% | -0.27% | 13.05% |
Foreign Stock (FTSE AW ex US) | 1.68% | 0.53% | 16.18% |
Total US Bond Mkt. (BarCap Aggregate) | -0.74% | -2.19% | -0.32% |
Short US Gov. Bonds (BarCap Gov 1-5 Yr) | -0.35% | -0.74% | -0.77% |
Municipal Bonds (BarCap 1-10yr Muni) | -0.28% | -0.98% | 0.26% |
Cash (ICE ML 3Month T-Bill) | 0.13% | 0.49% | 1.17% |