Despite their relatively low expected returns, bonds still provide diversification and stability.
Dollar Steady Against Yen As BOJ Stands Pat On Policy
Vanguard's Ken Volpert cautions investors about a rise in short-term rates, and also offers his thoughts on the U.S. debt ceiling as well as Vanguard's TIPS, international-bond, and total bond market funds.
The corporate bond index will struggle to return more than the 2% it already has this year given the likelihood of rising long-term rates and today's historically low credit spreads.
With low yields and stretched valuations, today's bond market is a lot more about bond picking and building specific risk into the portfolio, says Loomis Sayles' Elaine Stokes.