What percentage of portfolio should be in one stock

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As bonds have struggled, producing losses in client accounts over the past couple of years, we have had more clients ask the question: Should bonds still have a role in the portfolio?

Traditionally, the answer has been that bonds provide diversification and income.

What percent of retirement should be in bonds

They zig when stocks zag, providing income for spending needs. In finance terms, bonds have “low correlation” levels to stocks, and adding them to a portfolio would help to reduce the overall portfolio risk. However, over the last two years, as the Fed has worked to aggressively raise rates, this correlation has increased.

What we saw in 2022 was the bonds fell right along with (and nearly as much as) stocks.

Compound that with the current state of interest rates.

One of the most basic investing truisms is you should pursue investments offering a higher interest rate over investments with lower interest rates for the same level of risk. It just makes sense — of course you would want to earn more interest.

Another concept involves how soon you get your investment back

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