Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you Brandy. Appreciate it.
Brandy Auterson-Hurst:
So it seems like we have talked about the poor performance of bonds now for years. What do you think changes that dynamic?
David Nelson:
Well, there’s an expression in our industry that the cure for low prices is low prices, and essentially it means that eventually things get cheap enough that people step in to buy and I don’t know, but it’s possible that we’ve gotten to that point with the bond market as far as looking at it today. The chart that I brought along today basically shows that this could be potentially a turning point for bond performance. The blue bars show the annual performance of the Bloomberg Agg Bond Index. It’s looking at a combination of all bonds. It goes back to the ’70s. In the recent years in the right-hand side, you can see the last couple of years have been strongly negative. However, year to date bonds are on track for a positive year.
Brandy Auterson-Hurst:
Okay, so what does this mean for viewers’ investments?
David Nelson:
Well, it could certainly be a welcome change for investors in a balanced portfolio. Those individuals that have stocks, bonds, and cash type investments. Bonds have been a major disappointment. Again, as you brought up earlier, as far as four years, we’re looking at about a two and a half year period of time where things have really not looked good there. With stocks having a pretty good start to the year and looking like maybe we could hold this performance and if we could get a little push as far as from the bond market, which again we have so far this year, this could be a really good year for the average person investing money today.
Brandy Auterson-Hurst:
All right, David, thanks for your insight today.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
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