While it appears that the 30 year bull market in bonds is ending, bond gurus Chris Ryon and Martin Fridson say that bonds and fixed income investments still have a place in investors’ portfolios.
In an interview with WealthTrack, Ryon says that bonds and other assets besides stocks may be offering low yields, but they provide diversification that is important for investors. Fridson, meanwhile, talks about the benefits of preferred bonds. He says that because many preferred offerings are small, they aren’t followed by many analysts, which can create more opportunities for mispricings. Ryon also talks about the municipal bond market, saying that the credit quality of US municipal bonds does seem to be improving. And he discusses his firm’s “laddering” approach to dealing with different bond durations, and why it has been so successful.