Rick Ferri wrote:The report said there is a likelihood of higher rates. That's quite different than a near certainty of higher rates. I believe rates are going to stay low for several years, although there will be bumps in the road.There's too much slack in the global economy for inflation to rise.
I agree with the report that a balanced portfolio will cushion a 20% downturn in the stock market whether bonds are yielding 5% or 2%. Lower interest means less cushion, but not much less.
The article is trying to stop people from taking on more risk than they can handle. Now that the stock market is hitting new highs daily, people forget how they felt and acted during the 2007-2008 bear market.
High yield was not mentioned in the article.
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