Should Rising Rates Make You Own More Cash?

On May 22, 2018

How do you solve a problem like Bond Allocations? (With apologies to Oscar Hammerstein II.)

This is the question being asked by financial advisors and their clients regularly. With the recent increase in interest rates across the curve, capital losses are beginning to appear in bond portfolios. Should clients own longer fixed income instruments or hide in cash?

“Cash is Trash” or Is It?

Regular readers of this blog know that we believe that “Cash is Trash!” This has certainly been the case in the 21^st century as the chart of stock, bond, and money market total returns below indicates.