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How and Why to Invest in Bonds: A Morningstar View

This series of articles will tackle the basics of bond investing.

Many investors feel they should have bonds somewhere in their portfolios. But most don't know how to address their fundamental questions about how to do so. How much of their portfolios should be invested in bonds? Individual bonds or bond funds? What mix of different kinds of bonds is best over time?

In early 2019, Morningstar conducted a series of forums with people interested in bond investing and found that, from the get-go, bond investing can be confusing for many individual investors. Confusion often starts with the fact that bad economic news is generally good news for bond prices and vice versa. In other words, if greed makes stocks go up and fear makes them go down, it is the opposite for bond prices.

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