Income Isn’t the Only Reason To Own Bonds

Written by: Nils Bierkamp, Jonathan Cain, Brian Donnelly, and David Hays

Bonds may also offer a useful and inexpensive hedge in a rising equity market.

Key Takeaways

• Bonds have outperformed cash in past rate-cutting cycles, on average
• Unlike cash, bonds may provide positive optionality and a cheap hedge in the case of equity market volatility

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Related: The Case for Using a Sector Based Framework in Equity Portfolio Construction

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