Evaluating Today’s ‘Safe Money’
August 5, 2020 by John Williams
We’re all aware of the recent economic uncertainty, but many people may not understand how it is impacting the investment landscape. In particular, the bond market has had many shifts in recent, raising questions about its stability with many people.
Bond yields have dropped as a result of the economic impact of the global pandemic and in the wake of this shift, clients are naturally growing more concerned about the money that has historically been viewed as the most stable in their investment portfolios. People have tended to invest in bonds for safety. They are now seeing on the news or on their monthly statements that there may be a cause for concern with these investment choices that they may be relying on for stability.
There is a great deal of unknown in the current economic landscape, with the bond market, in particular, experiencing a lot of that volatility head-on. These new realities should cause people to reconsider how they are approaching their retirement investment strategy. Are bonds still the appropriate avenue for ‘safe money’ and will clients be able to rebuild confidence in them moving forward? Advisors who aren’t helping clients understand that they have additional options for their safety net investments are missing a crucial opportunity to support their clients.
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