Bond portfolios require diversification, too

Description

Abstract: During the past few years, extreme stock market volatility has spawned a newfound appreciation for bonds. However, even though diversifying one’s investment portfolio with bonds makes sense, there are right and wrong ways to go about it. This article discusses how to achieve true diversification and explains why bond funds may be a better option for some than purchasing individual bonds. And, although many income-starved investors have sought solace in high-yield bonds, a sidebar notes the risks.