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weeloonc
Newbie
Would you still allocate money in bonds?Given the low interest rates environment, does anyone still consider to buy bonds ETF as a stabilizer in your portfolio? Cos when interest rates does go up, the bond prices will definitely get move down, then wouldn't be all the gains from the dividend be offset?
Currently holding some NikkoAM SGD IGBond ETF from Invest-Saver RSP but conflicted if I should switch out.
Replies
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Interest rate is extremely low and there is a likelihood that interest rate will be raised in the near future. I have stayed out of bonds in my portfolio, preferring cash and stock.
Even Warren Buffett warned investor that bond has a bleak future. There are also many articles that the traditional portfolio of holding a proportion of stock and bond for diversification does not hold in this low interest rate environment.
https://sg.news.yahoo.com/warren-buffett-bond-investors-face-bleak-future-161052302.html
