Monday, December 3, 2007

Bonding With Your Money

When I was a newbie investor, I wanted to keep all my investments in stocks. I wanted my money to work harder, not just sit around in cash and bonds.

I read an interesting article today regarding the importance of keeping a percentage of your portfolio in bonds. Bonds may not be as sexy as stocks, but you'll be glad you're holding bonds when a big market correction hits.

The article says that research shows that bonds will lower the volatility and yet capture most of the gains of an all-stock portfolio.

Click here to read the WSJ article "Invest It All in Stocks...No Way"

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