The benefit of owning bonds, regardless of low or rising interest rates
Submitted by S. F. Ehrlich Associates, Inc. on October 6th, 2021
September 30, 2021
In a brief titled “Rising rates don’t negate benefits of bonds,” Vanguard1 addresses arguments that target why investors shouldn’t own bonds in a low interest or rising interest rate environment. They start with a point we’ve made ad nausea over the years: “…the role bonds play in a diversified investment portfolio – to be a shock absorber at times when equity prices head downward.”