Bonds are the boring counterweight to volatile equities. They reduce portfolio volatility, provide income, and historically rally when stocks crash — letting thee rebalance into stocks at the bottom.
A simple rule: bond percentage equals thy age minus 20. A 30-year-old: 10% bonds. A 50-year-old: 30%. A 70-year-old: 50%. Adjust for risk tolerance, but anchor here.
In high-inflation regimes, traditional bonds underperform. Consider TIPS (Treasury Inflation-Protected Securities) or I-Bonds for the inflation-protected slice.
The Seal of the Chamber
Defense wins the long campaign.