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While I was speaking with clients this morning, we reviewed the current stock market and what may lie ahead. We talked about the record start to the year, with the S&P 500 on track for the best first four-months in more than three decades. We also talked about the bond side of their portfolio, and the role it plays.

To me, this feels like what the late-great Richard Russell would refer to as the third phase in the bull market. The first is the low-hanging fruit, then the moderate advance—both climbing a wall of worry—into the “we can’t afford to miss the boat” third phase, when everyone’s a stock picker.

We may not be there quite yet, but as I’ve written to you in the past about my concerns with passive indexing and ETFs, (read Do ETFs Belong in Your Portfolio?, my series Dead or Alive? The Future of Long-Term InvestingCan You Avoid Investing with the Herd?Still Sure Indexing is Right for You? and Vanguard Founder Jack Bogle Sounds the Alarm on Index Funds for more) when everyone’s hopping around on Easter talking stocks, you might want to check out your bonds. Because records are made to be broken—on the way up—and, not to be forgotten, on the way back down.

Originally posted on Your Survival Guy