Investing Strategy
Bonds in 2026: Where They Fit in a Portfolio
Bonds play a role beyond yield. They can stabilize portfolios, reduce volatility, and provide rebalancing support during equity drawdowns.
Why bonds still matter
- Provide ballast against equity volatility.
- Support income planning needs.
- Create liquidity for planned withdrawals and rebalancing.
Bond allocation considerations
- Match duration risk to spending timeline.
- Understand credit quality tradeoffs.
- Use diversified bond exposure rather than concentrated bets.
Practical move: Bond positioning should be tied to portfolio function, not short-term rate forecasts.
Bond role checklist
- Define the job of bonds in your portfolio.
- Set target allocation and duration range.
- Review alignment annually with income and risk needs.
Model Income and Volatility Tradeoffs