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In this episode of Stocks in Translation, Crossmark Global Investments chief market strategist Victoria Fernandez joins Markets and Data Editor Jared Blikre and Producer Sydnee Fried and to break down for investors how much of their portfolio should be invested in bonds. While Fernandez says every investor has different preferences due to overall market risk tolerance, balancing portfolios is good so investors can take advantage of moving markets. Additionally, Fernandez advises young investors to have bonds in their portfolios to help better generate cash flow.
To hear more of Fernandez’s thoughts, watch the full interview here.
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This article was written by Lauren Pokedoff
What percent of your portfolio should be in bonds? I know it'll be a little different for everybody. But are you a sixty-forty person, some other number? Yeah.
Right.
Sixty-five.
Yeah. I'm like, yeah. Right? As a bond girl, I do want to say, oh, you need to be all bonds, but that's not appropriate for everyone. So, I will say, one of the best selling strategies we have at Crossmark, we call it our balanced core strategy, and we do take our large cap core equity and combine it with our core fixed income. People love having that combination in one portfolio, and it's fifty-fifty, uh, for us. And we do allow a 10% swing, because you want to be able to take advantage of one part of the market moving higher. You don't want to always be in their trading and reallocating it, so we allow it to swing a little bit. But fifty-fifty has worked well. I know sixty-forty historically is what a lot of people put in their portfolios. Some people even go seventy-thirty, but it depends on your risk tolerance, right? So people have to work with their advisors, look within themselves, how much volatility are they willing to take in their portfolio. Um, but I think everyone, even people in their twenties, thirties, you know, as they, um, even when they're young, it makes sense to have an allocation because it generates cash flow for you.
