Morningstar discussed on Money Talk

Automatic TRANSCRIPT

Be hold onto it maturity you'll get your ten thousand back but in the meantime as interest rates go higher nobody wants to own the bomb that you bought a couple of years ago to lower interest rates what has to adjust and saw the bond market works well as rates go up bond prices are going to go down so folks be very wary if you will buy bond funds in particular be wary of these in bond index funds this is someone who likes passive index etfs we use them in our portfolio we have virtually no stock funds they be one most of our stock funds or are we either have individual stocks are we own etf and most of those are passive that on the bond site not right now most of our traditional bond funds now our traditional bond funds why because we believe that we need a bond manager in some activelymanaged fund if you want it look through this yourself you can use morningstar whatever do your own research but look for things that are like diversified income you want wanna manager that can maneuver them your cash through an environment with higher rates there are bonds that can hold up better and if you don't feel you have the expertise or the time to manage a bond portfolio that's going to be changing and value if indeed we get rising rates from here then you'll look for something that's not so much a passive index fund because in my opinion they will underperform and i'll leave it at that i'd not giving any specifics you'll have to do your own due diligence talk to your adviser do your own homework but i think the trickier part of the investment portfolio frankly from here is not really the stock side it's the bond side but i do like the fact that the high yield bond market during this stock market decline held in their very well i also like the fact here's another reason why i'm not bearish from here is some of the top value managers the guys who are not aggressive investors the guys who have been out there warning people hey this is getting a little toppy here the market might be due get little overvalued here be.

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