Bond investing is crucial to developing a diversified portfolio.
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Why Adding Bonds to Your Portfolio Can't Wait
Kristin Orman, Senior Research Analyst, The Oxford Club
[Virginia Stock-Picking Millionaire Breaks No. 1 Rule of Investing...](
He bought Apple 22 years ago... Amazon 13 years ago... and Netflix more than a decade ago.
Now one of the world's greatest stock pickers is breaking the No. 1 rule of investing... and targeting a $3 stock that trades under a secret name. [See him explain his crazy approach live on stage here.](
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A Note from Bond Strategist Steve McDonald: I'm tired of pounding the table...
Last September, I told you to quit stocks and shift into bonds. I said the stock market would sell off - and boy, I hope you listened. Just take a look at what happened.
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[Q4 2018 Sell Off Chart]
 A couple of weeks later, the fourth quarter began and stocks tanked, sending the S&P 500 down 14% and the tech-heavy Nasdaq down 17% for the quarter.
If you had pulled money from stocks at the end of last summer - not all of it, just some, as I advised - and put it into bonds, you would have saved yourself a lot of heartache.
Not to mention, if you'd taken advantage of the "[Daily Bull Market](" I gave you the heads-up on, you could have turned [$10,000 into $2.1 million]( - just between December and April.
If you want to avoid the crazy ups and downs we saw, the percentage of bonds you must hold is equal to your age. If you're 55 years old, hold 55% of your portfolio in bonds. If you're 60, hold 60% in bonds, etc.
It's rare that investors get this kind of forewarning twice. But here I am telling you again: For Pete's sake, listen to what Kristin says below and buy more bonds.
It couldn't be any easier. I'll even guide you through it in [Oxford Bond Advantage](... [Click here now](.
- Steve McDonald
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[What Kind Of Bonds Owned Chart]
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 [Kristin Orman] Â
I'm disappointed, to say the least...
That's because more than 36% of Wealthy Retirement readers said they don't own any bonds.
You see, we talk a lot about the importance of diversifying your portfolio.
Remember, diversification doesn't just mean to invest in the stocks of different companies in different industries. Diversification also means that you need to build a portfolio that embraces a variety of investing strategies and asset strategies.
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Question of the Week Â
Why do you invest in bonds?
[Click here to answer.]( Â If your portfolio isn't diversified, you risk losing everything in the next market crash.
And it looks like a big chunk of you skipped the bond option. That's not good...
Most Wealthy Retirement readers are over the age of 50. Frankly, if you're invested in stocks only, you don't have enough time to weather the storm of a market downturn, let alone come back from one.
A stock market crash is coming. It's merely a matter of when.
We're currently riding out the longest bull market in history. I hope it lasts a lot longer, but we all know it'll eventually fizzle out.
And if the downturn happens right before your planned retirement, well, your plans may have to change.
That's why you don't want all of your retirement savings tied up in the stock market.
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Bonds: An Essential Part of a Diversified Portfolio
You need some stable investments. You need an asset class that will fluctuate less and recover faster during an inevitable bear market downturn.
And if you're trying to grow your wealth, cash doesn't cut it.
Let's face it, cash returns from banks are lousy. The average interest rate on savings accounts is a paltry 0.09%. That's less than 1%!
The "earnings power" of a savings account doesn't come close to keeping up with today's 1.8% inflation rate. Putting your money in a savings account will actually lose you money!
That's where corporate bonds come in.
Corporate bonds are a more defensive asset class than stocks, but they have higher returns than cash.
The safest bonds (rated AAA by Moody's) yield, on average, around 4% a year. That's more than four times the interest you can expect from a savings account and more than 1.5 times the rate of inflation.
Bonds historically beat stocks when the economy heads south. And they help smooth out the volatility in the stock market. You need both benefits.
Good investing,
Kristin
P.S. Diversification is no joke. And it's definitely not something that you can postpone.
Sooner or later, we're going to see a reckoning in the markets, and only people with a healthy balance of risk in their portfolios will come out on top.
[Bond Strategist Steve McDonald]( knows all of the ins and outs of the bond market. His "[Daily Bull Market](" could have saved you a headache or two last fall.
Not one of Steve's [Oxford Bond Advantage]( readers who followed his instructions lost money last winter - even in the worst month for stocks since the Great Depression. [Click here]( now to learn how Steve can help you safeguard your portfolio against the coming correction.
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[Look at What Obama Is Up to Now!]( [obamagun](
On September 18, 2019, Obama will get his last laugh.
That's when a group of his hand-picked cronies may single-handedly bring this raging bull market to a sudden and destructive end. To continue reading, [click here](.
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