Top Supporting Players for Your Bond Funds
These bond-fund Analyst Picks could give your portfolio protection--or an extra boost.
Given continued inflationary pressures, historically low yields, and the threat of rising interest rates, the bond market is not necessarily the safe haven that it was once presumed to be.
But that doesn't mean that investors should give up on bonds altogether. The core bond funds that are mainstays in many investors' portfolios provide valuable ballast for equity-heavy portfolios and will likely hold up better than stocks if the economy continues to show signs of weakness. (As stocks have struggled during the past six weeks, they've done just that.)
That said, many investors might be thinking about augmenting their core bond holdings these days, either to hedge against the potential for rising interest rates or add a dash of spice to help kick up returns.
Esther Pak does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.