Is it time to look at some alternatives to your bond holdings?

Just in case you have not noticed, the interest rates YOU receive on various investments like money market, Cds, bonds etc. have been at historic lows for quite some time.

 

Here is a chart to illustrate:

I have managed investment portfolios for over 20 years now. I am a strict adherent to “Modern Portfolio Theory” or Asset Allocation modeling** for this entire time.

If you would like to read more about this approach to management you can refer to a few pages on my website, or just Google the terms.

Asset Allocation & Investment Planning
The Importance of Asset Allocation

(This second link takes you to my video library. Once there click on the video with this name. Second row down, right hand side.)

With rates being so low, the performance of bonds over the next few years becomes a question many are wondering about.

 

As a refresher, in general when interest rates rise, the value of bonds will decline.

 

 

Just remember the teeter totter, or seesaw you played on as a kid:

 

He is bond values, She is interest rates!

In response to this, I have been engaged in research into potential substitutions for some part of the bond holdings in my asset allocation models.

The criteria for theses substitutions would include:

• Downside protection during stock market declines.
• Reasonable probability of consistent returns above current bond rates.
• Comfort with the idea of maintaining these holdings for the intermediate to long term.

I have identified, and am now recommending these substitutions to my current clients.

If you would like to learn more, ask questions, and see if these solutions might be appropriate for some portion of your portfolio, feel free to use the link below to set a time for a no obligation, exploratory phone call.

Set a phone appointment

 

I will look forward to talking soon!

 

Jerry Bergner, AAMS CMFC

 

**”No theory, strategy or Asset Allocation assures success or protects against loss. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. To determine what appropriate for you, consult a qualified professional.”

“Securities offered through SCF Securities Inc., Member FINRA/SIPC. Investment advisory services offered through SCF Investment Advisors Inc. SCF Investment Advisors
155 East Shaw Avenue • Suite #102 Fresno, California 93710-7619 • (800) 955-2517 • Fax (559) 456- 6109. Neither SCF Securities Inc. nor SCF Investment Advisors Inc. are affiliated with Integrated Life and Financial Planning.”

 

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