Cash rules everything around Marc…
In this week’s episode of State of the Market, Chief Income Strategist Marc Lichtenfeld channels his inner Wu-Tang to explain why you need to diversify your portfolio to “protect ya neck.”
Because we want to protect our nest eggs and continue generating income, even when stocks are taking a beating like they have so far this year.
But what asset(s) should you diversify into?
According to Marc, bonds are the perfect investment to hedge against market mayhem.
When stocks are falling, bonds ensure that you’re still generating income when the chips are down. During the global financial crisis, for example, stocks fell an average of 34% while investment-grade bonds returned more than 8%.
You would have lost more than a THIRD of your portfolio’s wealth if you were invested purely in stocks!
Still unconvinced? In this week’s episode, Marc touches on more statistics to show how bond investing protects, maintains and grows your wealth during down markets.
He also gives you several alternatives to bond investing when it comes to diversification.
Learn how to diversify in this week’s episode of State of the Market!
Good investing,
Rachel
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Source: Wealthy Retirement