Bonds as protection play against stock market volatility

Stock Market Volatility: Why Investors Should Consider Bonds

In the midst of stock market volatility, investors are looking for ways to protect their portfolios. One strategy that is gaining attention is increasing exposure to bonds. According to F/m Investments CEO Alex Morris, bonds, particularly on the short end of the curve, offer a safe haven for investors.

Speaking on CNBC’s “ETF Edge,” Morris highlighted the benefits of bonds in the current economic climate. He pointed out that with the uncertainty in the equity market and potential risks ahead, bonds provide a level of stability that investors may find appealing.

Morris, who was attending Miami’s Future Proof conference, emphasized the importance of innovative strategies in today’s market environment. His firm focuses on providing investors with access to unique investment opportunities that help mitigate risks.

Another advocate for bonds is TCW’s managing director Jeffrey Katz, who also attended the conference. Katz sees fixed income as a valuable component of a diversified portfolio, especially in the current market conditions. He highlighted the role of bonds in a traditional 60/40 portfolio and the benefits they offer in terms of risk management.

TCW is known for its Flexible Income ETF, which has been performing well since its inception in November 2018. The ETF’s top holdings include U.S. Treasury notes with yields above 4%, making it an attractive option for investors looking for stability and income.

Overall, the consensus among financial experts is that bonds can play a crucial role in navigating the current market volatility. With the economic backdrop and tariff risks looming, investors may find comfort in adding bonds to their investment mix. As always, it’s important for investors to conduct their own research and consult with a financial advisor before making any investment decisions.