A Must Own Asset Class
If the last decade has taught investors anything, it is that taking greater risk does not always result in greater return. An investor who put his entire portfolio in a basket of developed-world equity markets at year-end 1999 would have earned all of 2.34% over 10 years. And to earn that 2%, this investor would have endured two of the worst bear markets in history, with peak-to-trough declines of 45% and 53%. What’s more, an investment in conservative full-faith-and-credit-pledge short-term U.S. Treasuries was up 55% over the last 10 years.
The 2000s were without a doubt a dismal decade for equity-only investors. Investors excluding bonds from their portfolios are making a grave mistake. In Young Research’s Global Investment Strategy we provide in depth research on the fixed income markets. If you are not now with us, please join us. Sign up for a trial by clicking here.
Jeremy Jones, CFA, is the Editor of Young Research’s Global Investment Strategy and the Chief Investment Officer at Richard C. Young & Co., Ltd., Investment Advisors.
