Cash Is Not Enough: Why To Hold Bond ETFs Despite Price Rollercoasters.
Everyone has an idea about how the Stock market works. Yet, Bond markets are widely misunderstood. By Retail Investors, they are quite often labelled as ‘uninteresting’, to put it mildly. But Bonds are important for the overall success of your investment strategy.
For instance, most investors are still surprised to hear that Bond ETFs can lose 20%+ of value. Bonds can also ‘pop’ during a crisis when they gain as much in value in a few weeks.
Let’s play with a simplified Bond ETF calculator to get an intuitive sense of what is the upside and downside of Bond ETFs. Is keeping cash is preferable?
