Where do bonds fit within a portfolio? Do they still make sense even though interest rates are near historic lows?
Today's episode is a basic primer on bonds and how they are a key building block in a diversified portfolio.
As a result of the Great Recession a few years ago, the Federal Reserve lowered short-term interest rates to historically low levels. The thought was by lowering rates, it would make it easier for companies to borrow money to reinvest in their business and jumpstart the economy.
Well, the low rates have, to some degree, helped the economy but it created another problem. With low rates it's hard for savers to find places to get a decent return on their savings.
