Is the Case for Bonds a Myth?
In the world of investing, it's a common trope that we need to be diversified. Hedge your bets, we're told: Own stocks in an array of companies and industries, and buy bonds for those years when the whole stock market tanks. But over the long term, investors pay a price for the security of bonds in the form of lower returns on investment. And that has led Motley Fool Answers listener Joseph to the idea that perhaps he can get a similar steady-income result from putting a share of his portfolio into high-quality dividend stocks.
In this segment from the July mailbag show, hosts Alison Southwick and Robert Brokamp -- and special guest Ross Anderson, a certified financial planner at Motley Fool Wealth Management -- discuss the pros and cons of that approach, weigh the fundamentals of the argument in favor of bonds, and consider some worst-case scenarios.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. A full transcript follows the video.
Source Fool.com
