Why Bonds Are Still Essential for Diversified Portfolios

For long-term investors, a growing challenge today is how to manage cash as short-term interest rates fall. What appears safe actually comes with real costs beneath the surface, since holding too much cash can quietly undermine long-term financial goals.

The famous investing principle "don't fight the Fed" was coined in the 1970s but has only grown in significance. The idea is simple: the Federal Reserve's monetary policy decisions can have important effects on markets and the economy, so investors should consider them carefully.