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Bridget Urlich

The value of bonds in an equity market downturn

By | Insights
When equity markets are buoyant and stock market indices are seemingly reaching new market highs on a daily basis, it’s easy to question why people should advocate investing in bonds....
When equity markets are buoyant and stock market indices are seemingly reaching new market highs on a daily basis, it’s easy to question why people should advocate investing in bonds. After all, in the current interest rate environment, it’s difficult to find returns materially above four percent, and in a lot of cases, lower still. However, the last month is hopefully a timely reminder as to why we look at investing from an overall portfolio perspective, which includes multiple asset classes (equities, bonds, property and cash). The NZX50 returned -6.15% for the month of October 2018, which is the eighth... Read more