Stocks fuel growth while fixed income acts ballast and stability. This Insight covers income, risks and how they complement equities to keep plans on course.
Alternative Investments can diversify returns, enhance income and hedge risks, but they require patience, moderation and an understanding of costs and risks.
Bonds serve as the steadying force alongside equities, offering income, stability and balance in an asset allocation.
For nearly five decades, we at The Prudent Speculator have celebrated equities as the single-best engine for compounding wealth over the long haul. Yet even the most ardent equity enthusiast must admit that the stock market rarely moves in a straight line. The climb up the proverbial “Wall of Worry” can be bumpy, and history shows that periods of volatility, recession or investor angst are part of the journey.
This is where fixed income earns its keep. Bonds and other contractual income-producing securities have long served as the steadying force in a diversified portfolio, providing ballast when the equity seas turn stormy. Investors appreciate not only the regular stream of interest payments but also the generally lower volatility profile of fixed income compared to stocks in their personal asset allocations.
Of course, bonds are not without risks of their own, and their return potential pales in comparison to equities over extended time horizons. Still, they can serve multiple purposes: smoothing portfolio swingss, generating dependable income, preserving capital and helping align investments with individual goals and timelines.
In our view, successful investing is not about choosing between stocks or bonds. It is about understanding how the two work together (growth on one side, ballast on the other) to keep long-term financial plans on track.
FOUNDATIONS OF FIXED INCOME
At its core, a bond (aka a fixed income security) is a loan. The investor is the lender and the issuer is the borrower. Terms of the bond are set at the outset. A buyer of a bond hands over a sum of money in exchange for a series of interest payments, often called coupons, along the way plus the return of your initial principal when the bond matures. A bond maturity is the same thing as the loan agreement ending.
There are several key components of bonds:
Par Value: the amount the bondholder expects to be repaid at maturity, usually $1,000 per bond.
Coupon: the stated annual interest payment, expressed as a percentage of par value. Interest payments, if a feature of a specific bond, are made periodically.
Maturity: the date on which the issuer repays the principal.
Yield to Maturity: the investor’s effective return, which adjusts for the original price paid, time to maturity and coupon income.
Call and Put Features: these allow the issuer to repay early or the holder to sell back before the maturity date, affecting risk and potential return.
Issuers are diverse. The U.S. Treasury funds government operations, corporations borrow to support business growth, municipalities finance public projects and global sovereigns raise capital for their budgets. Each issuer carries a credit rating and default risk, and the price investors are willing to pay reflects the balance between perceived risk and the time horizon of the bond. One enduring principle is that bond prices and yields move in opposite directions. When yields rise, prices fall, and the reverse is also true.
Unlike equities, where investors own a slice of a business and share in its growth, bonds are purely contractual. Predictability is their appeal, but upside is limited. The bondholder receives the promised interest and repayment, no more and no less. Investors accept that tradeoff, valuing stability and reliable cash flow over the open-ended but more volatile returns of stocks.
For long-term allocators, these basics form the foundation for understanding how fixed income can complement equities and alternatives in a well-constructed financial plan.
MAJOR FIXED INCOME CATEGORIES
The fixed income universe is broad, several times larger than the equity universe. Each bond type brings its own set of characteristics, risks and potential rewards.
U.S. Treasuries are the bedrock of the bond world. Backed by the full faith and credit of the American government, they are considered virtually free of default risk. They come in a range of maturities. Treasury Bills mature in under one year. Treasury Notes mature in two to ten years. Treasury Bonds mature as far out as thirty years. Treasury Inflation Protected Securities, or TIPS, adjust both principal and interest for changes in consumer prices, offering a direct hedge against inflation. Because Treasuries are viewed as risk-free, they set the global benchmark for interest rates and act as the yardstick against which virtually all other assets are measured.
Corporate bonds are issued by companies seeking to fund expansion, acquisitions or refinancing. Investment-grade corporate bonds, which are rated BBB or higher, carry lower yields and have greater perceived safety. High-yield bonds, often called junk bonds, pay more in interest to compensate for elevated credit risk. Corporate bonds play an important role by offering a balance between yield and exposure to the fortunes of individual companies, allowing investors to participate in credit markets without owning the stock outright.
Municipal bonds, or munis, are sold by states, cities and municipalities to finance roadways, schools and other public works projects. Their key attraction is the tax advantage, as interest payments are generally exempt from federal income tax. Some issues are also exempt from state and local taxes. Munis are divided into general obligation bonds, which are backed by the taxing power of the issuer, and revenue bonds, which rely on income from specific projects. These securities are appealing to investors in higher tax brackets who benefit from the tax exemptions.
Agency bonds are issuances from government-sponsored enterprises like Fannie Mae, Freddie Mac and the Federal Home Loan Banks. They are not fully guaranteed by the U.S. government, but they have historically been viewed as very safe. Because of the slightly greater credit risk, agency bonds usually yield a bit more than comparable Treasuries. They also provide exposure to sectors like housing and maintain a relatively high level of credit quality.
International bonds open the door to opportunities outside the U.S. Debt from developed market governments and corporations can provide stability but is still influenced by foreign monetary policy and economic conditions. Emerging market bonds may deliver much higher yields, but they carry additional risks including political instability, often weaker currencies and less developed capital control systems. International bonds can broaden diversification, but they demand careful consideration of risks that do not exist in domestic markets.
Fixed Income Mechanics
Prices, yields, durations, credit spreads and other factors interact to shape returns and risks in fixed income investing.
Bonds are a series of cash flows that can be valued by discounting each payment back to today (discounting is the process of translating a future payment into its value today since a dollar received ten years from now is not worth the same as a dollar in hand today). That idea explains bond behavior. When bond yields go up, the present value of those cash flows goes down, and prices fall. When bond yields go down, prices rise. Premium bonds trade above par because their periodic coupon payments are large relative to current market rates.
Discount bonds trade below par because their coupons are lower than current rates. As maturity approaches, prices move towards par, which is why a premium bond drifts lower over time and a discount bond drifts higher, all else equal.
Bond prices are quoted two ways. The clean price excludes accrued interest and is the number most investors watch. The dirty price adds accrued interest and is what actually changes hands. Accrued interest reflects the coupon that has built up since the last payment date.
Most plain vanilla bonds pay semiannual coupons, although monthly and quarterly schedules exist. Some securities amortize principal along the way, while most return all principal at maturity.
Yield is the bridge between quoted price and expected return. Current yield looks only at annual coupon divided by price, which is simple but incomplete. Yield to maturity (YTM) is the internal rate of return that equates all promised cash flows to the price you pay, assuming coupons are reinvested at the same yield. Bonds with embedded options require additional valuation adjustments. Yield to call (YTC) assumes the security is redeemed at the first call date. Yield to worst (YTW) takes the lowest yield across all possible call or maturity paths and is a good way to compare bonds that might be retired early.
The yield curve in Figure 3 maps yields across maturities. In normal times it slopes upward as investors demand extra compensation for tying up money for longer. At times it flattens or inverts when near term policy rates sit above longer term expectations, as is shown by the green dots for 2023. The curve embeds two ideas. First is the market’s view of future short-term interest rates. Second is a term premium that compensates for a longer holding period and the embedded uncertainty over that time. Investment strategies often try to benefit from the curve’s shape. A bond can “roll down” a positively sloped curve as time passes, which can add to total return even when yields do not change.
Duration converts possible interest rate moves into approximate price moves. Macaulay duration is a time weighted average of cash flows. Modified duration scales that concept into percentage price sensitivity for a small change in yield. A five-year duration suggests that there would be a five percent price move for a one percent change in yield. Convexity refines the estimate by recognizing that the price yield relationship is curved rather than straight. Higher convexity means prices rise more when yields fall than they drop when yields rise by the same amount, which is favorable to an investor. Key rate duration goes a step further by measuring sensitivity to shifts at specific maturities, useful when the curve twists rather than moves in parallel.
Credit is the second major driver of bond pricing. Ratings from agencies such as Moody’s, S&P and Fitch summarize an opinion about default risk, but spreads are what investors trade. A credit spread is the extra yield over a matched Treasury that compensates for a bond’s embedded risk. Several spread measures are common. G-spread uses a point on the Treasury curve. I-spread uses interest rate swaps as the benchmark. Z-spread is the constant spread added to every point on the Treasury curve that matches the price. Option-adjusted spread attempts to strip out the value of embedded options to isolate credit and liquidity compensation. Downgrades can widen spreads and put pressure on prices. Recoveries in default vary by seniority and collateral, which is why debt covenants (loan agreements) matter.
Reinvestment and horizon matter for realized returns. Total return over a period combines coupon income, price change and the effect of reinvesting coupons. Rising yields hurt prices but allow reinvestment at better rates, which can offset price pain over longer horizons. Falling yields boost prices but push reinvestment rates down. Investors with short horizons feel price moves more, while investors with long horizons often find that higher yields today set the stage for better long run outcomes.
Liquidity and structure also influence pricing. Heavily traded issues with broad ownership tend to have tighter bid-ask spreads and more stable pricing. Small or complex issues can be cheaper but may carry wider spreads and slower execution. Callable bonds give issuers the right to repay early, usually when rates fall, which caps upside. Putable bonds give holders the right to sell back to the issuer at set dates, which can cushion downside and raise price stability. Mortgage-backed and other prepayable securities add a different wrinkle. When rates fall, homeowners refinance faster, which shortens expected cash flows and can create negative convexity. When rates rise, prepayments slow, extending duration just when investors might prefer shorter-term exposure.
Inflation is a key risk because coupons and principal are typically fixed in nominal terms. Higher inflation without a matching rise in yields erodes purchasing power. Treasury Inflation Protected Securities (TIPS) address this by linking principal to changes in the Consumer Price Index and paying interest on the adjusted amount. Real yields on TIPS reflect inflation-adjusted required returns, while nominal Treasury yields can be split into real yield plus expected inflation through the breakeven rate.
Floating rate notes reduce interest rate risk by resetting coupons periodically based on a reference rate plus a spread. Payments adjust as policy rates move, which can stabilize prices but leaves the investor exposed to rate-path risk.
Foreign bonds introduce currency into the equation. A U.S. based investor who buys a euro bond is taking on the bond’s risk plus the exchange rate between the dollar and the euro. Currency can amplify or offset local bond returns. Hedging, though costly, can reduce that volatility by using forward contracts that are largely determined by interest rate differentials.
All of these mechanics come together at the portfolio level. Interest rate risk can be tuned with duration. Credit exposure can be dialed in by mixing assets. Liquidity and structure can be matched to the need for spending or rebalancing. Tax status can be aligned with the investor’s bracket and account type. In our view, the right approach starts with the investor’s horizon and cash flow needs, then one selects the mix of maturities, credits and structures to support it.
PRICE VS. YIELD
Figure 4 shows the inverse relationship between bond prices and yields. A ten-year bond with a 5 percent coupon trades at par ($100) when market yields are also 5 percent. The same bond trades at a premium when prevailing yields are lower, since its $5 coupon is more attractive than what new bonds are paying. It trades at a discount when prevailing yields are higher, since investors can earn better income elsewhere. Put simply, an investor will pay $100 for a $5 coupon in a 5 percent yield environment, but will not pay $100 for that same $5 coupon if the market is offering $7. Conversely, if yields fall, the $5 coupon becomes more valuable, and buyers are willing to pay more than par.
COMPONENTS OF FIXED INCOME RETURNS
Figure 5 breaks down the sources of total return for a 20-year bond after ten years. Coupon income is cash flow and the largest source of return. Reinvestment of those coupons adds or subtracts depending on prevailing rates, and price change reflects the impact of shifting yields on the value of the bond when sold. Over time, the combination of income, reinvestment and price movements all contribute to the total return.
REINVESTMENT RISK OVER TIME
Figure 6 shows how the reinvestment of bond coupons can alter realized outcomes depending on the interest rate environment. In a rising rate scenario (blue line), coupons are reinvested at higher yields, which boosts their future value at the ten year horizon. In a falling rate environment (green line), reinvested coupons compound at lower yields, which diminishes their contribution despite the bond itself benefiting from price appreciation. The neutral benchmark (yellow line) shows steady growth when reinvestment rates remain constant.
CONVEXITY IN ACTION
Duration is often described as the most important measure of bond risk. It offers a handy rule of thumb. For every one percent change in interest rates, the price of a bond will change by roughly its duration (in percent). A bond with a duration of five years might be expected to fall about 5% if rates rise one percentage point, or to gain about five percent if rates fall by the same amount. This shortcut is useful for back-of-the-napkin math, but does not tell the whole story.
The true relationship between a bond’s price and its yield is not a straight line. It bends. That bend is called convexity. Convexity describes how the sensitivity of a bond’s price itself changes as yields move. It adds an extra layer to our understanding of interest rate risk. A bond with higher convexity will respond more favorably to falling rates than it will react unfavorably to rising rates of the same size. Put differently, the curve of the price-yield relationship gives investors a little more reward when yields drop and a little less pain when yields climb.
This asymmetry is subtle but powerful. It is one reason long-term or small-coupon bonds often behave differently than short-term or higher coupon bonds. Because more of their value lies in distant cash flows, they have more curvature, or convexity, in their price-yield profile. On the other hand, callable bonds often show negative convexity. When rates fall, their upside is capped because issuers can call them away and refinance at cheaper levels, limiting the investor’s gain.
Convexity in action is explained with the visual support of Figure 7. If you draw the price of a bond against different yields (blue line), the curve rises more steeply as yields go down and flattens as yields go up. This is why convexity is prized. It means that the market tends to deliver more upside than downside for equal rate shocks. For professional managers, convexity is a key tool in shaping portfolio risk and explains why some bonds trade at higher prices than others, and why some bonds command a premium.
CREDIT SPREADS
U.S. Treasuries of all maturities are often regarded as the anchor of the fixed income investment world. Because they are backed by the U.S. government, investors treat them as the closest thing to “risk free” available. Other bonds, like those issued by corporations or municipalities, carry more risk, so they must pay a little extra (and sometimes a lot extra) to convince investors to buy those securities. That extra yield above Treasuries is called the credit spread. It is the market’s way of compensating lenders for taking on uncertainty.
Credit spreads are usually quoted in basis points, or hundredths of a percent, above Treasuries. For example, a spread of 150 basis points means a corporate bond pays 1.50 percent more than the comparable Treasury. Spreads also do not stay fixed. They behave almost like a barometer of fear and optimism. In calm periods, when investors feel confident, spreads shrink because people are willing to accept lower returns for credit risk. In stressful times when uncertainty is high, spreads widen because investors demand a higher payoff to hold bonds that might falter.
In Figure 8, we show that history offers many clear reminders. During the Dot-Com Bust of the early 2000s, spreads on high-yield bonds jumped as investors worried about defaults and stayed elevated. In the Global Financial Crisis of 2008, investment-grade spreads roughly tripled, while high-yield spreads soared to double-digit percentages as the market was gripped by fear and uncertainty. The COVID pandemic shock of 2020 resulted in another rapid spike in spreads. Yet in each case, as conditions stabilized and investor confidence returned, spreads narrowed again, rewarding those who did not abandon their holdings at the worst moment.
Spreads are powerful because they affect both the income a bond provides and its price in the market. When spreads tighten, the extra yield that investors require falls, which makes bond prices rise even if yields stay the same. When spreads widen, the opposite happens. Prices fall as investors demand more return for taking risk.
Think of it in an example. Suppose a 10-year Treasury bond is yielding 3% and a corporate bond of the same maturity is yielding 5%. The credit spread is 2%. If economic news turns negative and investors suddenly worry about defaults or other risks, they may demand a 7% yield for that same corporate bond. Now the spread has widened to 4%, and the bond’s price must fall to deliver that higher yield. Later, if conditions improve and the yield drops back to 5%, the spread narrows again and the bond’s price rises.
This simple back-and-forth shows why spreads are sometimes called the “equity risk premium” of the bond world, meaning spreads represent the extra return investors demand for taking on uncertainty. Wide spreads usually appear in moments of fear and unknown, when risk is greatest, even as opportunities may also be richest for long-term investors. Narrow spreads often show up in times of optimism, when credit feels safe but the compensation for risk is thin. Watching spreads over time gives a window into market psychology, helping investors recognize when fear has driven prices down to attractive levels or when enthusiasm has left little margin for error.
INFLATION
Inflation is one of the most consequential forces in fixed income investing. Bond coupons are usually fixed in nominal terms, meaning they pay the same dollar amount each period regardless of what happens to prices in the broader economy. When inflation rises, the purchasing power of those fixed coupons declines. A $50 coupon payment feels generous when it buys a full tank of gasoline, but less so when rising prices cut the amount of fuel that can be purchased in half.
This is where the concept of real yield comes in. Real yield is simply the bond’s nominal yield minus the rate of inflation. A quick sketch makes the idea clear. If a bond yields 4% while inflation is 3%, the investor’s true return is only about 1% after adjusting for rising prices. If inflation climbs above the nominal yield, the real return turns negative, which means purchasing power is eroded even though coupon payments are still being received. Figure 9 charts this relationship over a longer history.
Treasury Inflation Protected Securities, or TIPS, were created to address this challenge. With TIPS, the principal value of the bond is adjusted for changes in the Consumer Price Index, and coupons are paid on that adjusted amount. This means interest payments rise when inflation rises and fall when inflation falls, preserving real purchasing power. The difference between the yield on a regular Treasury and the yield on a TIPS of the same maturity is called the breakeven inflation rate, which represents the market’s expectation for inflation over that time period.
Understanding real yields is critical because they influence asset allocation and risk appetite. Historically, periods of very low or negative real yields have pushed investors toward equities or other riskier assets in search of growth, while higher real yields have made bonds more competitive as a store of value. For the long-term allocator, keeping an eye on real yields helps balance growth objectives against the need to preserve purchasing power.
COUPON REINVESTMENT RISK
When investors buy a bond, they expect to receive the coupons promised and face the question of what rate those coupons can be reinvested. This is known as reinvestment risk. Even if the bond itself is held to maturity, the realized return depends on the rates available each time a coupon is paid and reinvested.
Consider a 20-year bond with a 5% coupon, held for 10 years. Two different interest-rate paths highlight the impact of reinvestment.
In a rising rate environment, coupon payments can be reinvested at higher and higher yields over time. While the bond’s price might decline on paper as market yields rise, the stream of reinvested coupons grows larger. By the end of the holding period, the investor often ends up in a stronger position because the power of compounding works at progressively higher rates.
In a falling rate environment, the opposite happens. Bond prices may rise in the short term, delivering capital gains if the bond is sold, but the coupons earned along the way must be reinvested at lower and lower yields. Over time, this drag on reinvestment can reduce the total return compared to the rising rate scenario.
We can see the difference in Figures 10 and 11, which show that reinvestment risk cuts both ways. Rising rates can hurt bond prices but boost future income, while falling rates can create immediate gains but reduce long-term compounding. Investors with longer horizons should carefully consider reinvestment and inflationary risks.
Investing in Fixed Income
There are many considerations that drive fixed income allocations, including tax treatment, account placement, structure and risk characteristics.
Taxation is a critical consideration in fixed income investing and can have as large or larger an impact on what securities you’ll want to own than in other asset classes. While a share of stock is a share of stock, bonds can have very different tax consequences, so it also matters in which accounts you decide to hold them. If the account is tax-favored, like a 401(k) or Roth IRA, you can simply reach for maximum yield, all else equal. If you have a conventional, taxable brokerage account, you’ll want to consider your personal tax bracket and perhaps chat with your tax folks before buying fixed income securities.
U.S. Treasuries are exempt from state and local income tax (but not federal), which makes them attractive for residents of high-tax states. Corporate bond coupons are taxable at ordinary income rates, which lowers the after-tax return. TIPS adjustments for inflation are taxable each year even though the cash is not received until maturity, creating “phantom income” that can be a surprise. Muni bonds, on the other hand, offer federally tax-free income, and often state and local exemptions as well. This is why high-income households in top brackets usually find them compelling despite their lower stated yields.
A useful tool here is the tax-equivalent yield (TEY). This calculation adjusts a muni’s yield to show what a taxable bond would need to pay to match the after-tax return. The formula is: Muni Yield / ( 1 − Tax Rate ). For example, a 3 percent tax-exempt bond is equivalent to a 4.6 percent taxable bond for someone in the 35 percent bracket. The higher your tax rate, the more attractive muni or other tax-friendly bonds become on a relative basis.
CURRENCIES AND GLOBAL BONDS
You’ve identified the account you’ll use for your bond purchases and know the percentage of your portfolio that should be in fixed income. Your custodian is ready to take your trades, but there’s also the option to add international debt. We often prefer ETFs for this exposure, though individual bonds may work in certain cases. The key is to be clear on why adding a slice of international bonds might improve your allocation and equally clear on why they might not.
International debt can provide diversification and sometimes higher yields, but currency swings can overwhelm the credit story. A euro-denominated bond may show a positive return in local terms yet still lose value for a dollar-based investor if the euro weakens. Currency hedging can reduce that volatility, but it comes with a cost tied to interest-rate differentials. Fortunately, investors have fund choices that reflect both approaches. For example, JPMorgan’s EM Local Currency Bond ETF (EMLC) gives investors direct exposure to local currencies, while the J.P. Morgan USD Emerging Markets Bond ETF (EMB) hedges much of that risk away at the cost of a lower yield. Similar pairs exist across the global bond market, so it’s essential to know exactly what exposure you’re buying.
THE FIXED INCOME UNIVERSE
The bond market is vast. In the U.S. alone, outstanding fixed income securities exceed $58 trillion across Treasuries, corporates, municipals, agencies, and mortgage-backed bonds, compared with about $62 trillion in domestic equities, according to SIFMA. For investors, that scale brings enormous opportunity but also added complexity, as each segment of the bond universe carries its own risks, rewards, and unique characteristics.
YIELDS DRIVE FUTURE RETURNS
The single best predictor of bond returns is the yield at which you invest. Higher starting yields generally lead to stronger forward returns because they provide a baseline of income and a cushion against rate changes. Conversely, buying bonds when yields are unusually low has historically led to muted results. For investors, today’s higher yields set the stage for better outcomes than were available just a few years ago. Since bonds don’t grow their yields the way companies grow earnings, the extra effort to identify the right securities and acquire them at a reasonable price is especially important.
LIQUIDITY AND CRISIS LESSONS
Liquidity is usually taken for granted in fixed income, but it can vanish at the worst times. Even the U.S. Treasury market saw dislocations in March 2020 when pandemic panic hit and sellers overwhelmed buyers. Prices moved in ways that surprised many, underscoring that no market is immune to stress. And in 2022 when the Federal Reserve rapidly hiked interest rates to combat inflation, long-term bond (20+ years) prices plunged even more than equities that year. So much for “stability,” we observed.
We generally avoid long-term bonds as a core position because we prefer equity returns if we are going to hold something for the long term. Therefore, it is our view that bonds should serve as the ballast in a diversified portfolio. Their income and lower day-to-day volatility provide stability when equities are turbulent, helping to smooth the ride and keep investors anchored to their financial plan. Fixed income is also the natural reservoir for near-term cash needs. Coupons provide a dependable stream of income, and maturing bonds or bond ladder structures can be timed to fund spending obligations without the need to sell stocks into weakness. Used this way, fixed income not only steadies portfolio values but also ensures that liquidity is available when it is needed most.
Turning to bond ladders, in Figure 13 we sketch a simple way to use fixed income for cash needs through a framework called a bond ladder. Suppose an investor wants to ensure funds for the next four years of expenses. They could buy four bonds today: a 1-, 2-, 3- and 4-year maturity. As each bond matures, the principal covers that year’s expenses. At the same time, the ladder can be “rolled forward” by purchasing a new 4-year bond with the proceeds, keeping the structure intact. This creates a steady stream of cash flows, reduces reinvestment risk by spreading purchases over time and provides peace of mind that near-term obligations can be met. Also, one avoids the volatility of long-term bonds by staying on the short end of the spectrum.
ALIGNING FIXED INCOME WITH GOALS
At the portfolio level, bonds play a far greater role than simply serving as the opposite of equities. They provide the liquidity to meet spending needs without being forced to sell stocks into weakness, act as the anchor that steadies portfolio swings, and offer a way to align maturity schedules with specific financial goals. Strategies such as laddering maturities, diversifying credit quality, and mixing domestic with international debt help match income streams to timelines. In our view, the most effective use of bonds is not as a stand-alone bet but as a purposeful complement to equities, keeping long-term financial plans on course through both calm and storm.
STAYING THE COURSE
The history of markets is a chronicle of setbacks overcome and rewards earned by those willing to endure them. From our first issue in 1977 through recessions, wars, disease, bubbles and booms, the lesson has been consistent: time in the market, coupled with discipline, is the most reliable path to long-term wealth creation.
But equities are not meant to carry the load alone. Bonds and other fixed income securities have long played a supporting role, providing ballast when the equity seas turn rough and offering the liquidity to meet near-term spending needs without being forced to sell stocks into weakness. A well-constructed portfolio blends growth potential from equities with the stability and income of fixed income, aligning both sides with an investor’s goals and time horizon.
No strategy can eliminate the bumps along the way, but diversification across asset classes, styles, sizes and geographies helps portfolios weather the inevitable storms. By focusing on fundamentals rather than headlines, by treating volatility as an ally rather than an enemy, and by giving the magic of compounding the years it requires, investors position themselves to achieve their financial goals.
WANT TO KNOW MORE ABOUT FIXED INCOME INVESTMENTS?
For over 48 years, our team has proudly partnered with individuals, families and business owners to navigate the complexities of long-term investing and wealth management.
Through ongoing disciplined financial planning, personalized attention and a customized approach, we have helped our clients chart paths toward their unique aspirations, no matter how intricate or challenging the journey.
To learn more about our personalized wealth and asset management services, please contact:
Jason R. Clark, CFA
Principal, Portfolio Manager
949-424-1013
jclark@kovitz.com
