"The stock market isn't the only game in town..."

These bonds are the "exception"... [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( SPONSORED [This NEW Electric Vehicle Stock Could Help Fund Your Retirement]( Its car is faster than super-cars like Ferrari's F8, McLaren's 720S and Porsche's 911 Turbo. Yet it's 100% electric. [Discover the new $25 startup that could be the next EV giant.]( [BOND INVESTING]( [The Remarkably Consistent Performance of High-Yield Bonds]( [Jody Chudley, Contributing Analyst, The Oxford Club]( [Jody Chudley]( I love the stock market. Over time, maintaining diversified exposure to stocks is proven to grow your wealth. Since the S&P 500 was formed, the average annualized return for owning the index has been around 10%. [S&P 500]( At that rate, you can double your money every 7.2 years. This likely isn't news to you. As a Wealthy Retirement reader, you're likely already aware of the stock market's power to compound wealth over time. But the stock market isn't the only game in town... There is [another asset class]( that you may be less familiar with that has provided returns similar to the stock market's over the long haul... That asset class is bonds - more specifically, [high-yield bonds](. These bonds deserve a place in your wealth-creation plan. The long-term returns they generate match up well with what you can earn from stocks. That means [adding high-yield bonds to your portfolio mix]( increases your diversification without sacrificing returns. The returns will just take a different form... Investors in stocks mostly earn capital gains, with a smaller amount of income coming from dividends. Investors in [high-yield bonds]( on the other hand, mostly earn income from interest payments, with a smaller portion of their returns coming from capital gains. That means for income-focused investors, [high-yield bonds are especially beneficial](. SPONSORED [Yours Free! Top FIVE Dividend Stocks Right Now]( Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... completely free of charge! You'll discover... - An "A"-rated, ultra-safe dividend stock with a huge 8% yield - Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income - And finally, Marc's No. 1 dividend stock for a LIFETIME of income. [Click here to get the names and ticker symbols now](... before the download link expires. **NO CREDIT CARD REQUIRED!** Remarkably Consistent Performance High-yield corporate bonds did not really hit their stride until the late 1970s and early 1980s. Their performance over the years allows us to see how this asset class weathers all kinds of situations - changes in interest rates, recessions, oil shocks and almost every other market condition imaginable. Several different studies have examined [high-yield bonds]( over time. They all show similar results, and most of them focus on how interest rate fluctuations impact performance. Most bond classes are highly sensitive to interest rate changes. Bonds typically do well when interest rates decline and do poorly when interest rates rise. [High-yield bonds]( are the exception. All studies of high-yield bonds have shown that the asset class performs well in both rising and falling interest rate conditions. The data shows that this is a consistent asset class... and a perfect addition to a diversified portfolio. Below is a table from a study done by the investment firm Hotchkis & Wiley. This study looked at [high-yield bond performance]( over a 30-year period, from August 31, 1986, through December 31, 2016. It found that there were 176 months when interest rates were rising and 188 months when interest rates were falling. But the performance of [high-yield bonds]( in both conditions was remarkably similar... And remarkably good. [Stock Market-Like Returns in All Market Environments]( This three-decade study found that when interest rates were falling, [high-yield bonds]( generated an annualized return of 8.2%. When rates were rising, the performance of high-yield bonds actually was better, increasing to an 8.8% annualized return. As With Stocks, Diversification Is Key The Hotchkis & Wiley study shows that long-term returns for [high-yield bonds]( are nearly 9% annualized. That's close to what the stock market has generated. And as long as you know where to look, [high-yield bonds can be considerably less risky](. With that record of excellent long-term returns in all market conditions, high-yield bonds are clearly a great source of diversification for our portfolios. And just as we should diversify our portfolios across different asset classes (stocks, bonds, real estate, etc.), we should also [diversify across the high-yield bond component of our portfolio](. Investors shouldn't look to build big positions in the [high-yield bonds]( of any one company. Instead, investors should look to [diversify into high-yield bonds]( that have historically generated stock market-like returns and generous amounts of income. Good investing, Jody P.S. My close friend, Chief Income Strategist Marc Lichtenfeld, recently revealed an investment that pays out [contractually obligated returns of up to 110% in less than five years](. It's the perfect asset if you're looking for gains completely outside of the stock market... [Diversify into THIS investment before you touch another stock. Get all of the details here.]( [Leave a Comment]( MORE FROM WEALTHY RETIREMENT [Enbridge Building]( [Is This 7.4% Yielder as Safe as It Was Last Year?]( [Relaxed Man]( [The Easiest Way to Protect Your Wealth]( [Superhero]( [How to Become a Bear Market Hero]( [Engineer]( [Is Liberty Latin America an Insane Value?]( [Facebook]( [Facebook]( [Twitter]( [Twitter]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AThese%20bonds%20are%20the%20%22exception%22...%0D%0A%0D [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AThese%20bonds%20are%20the%20%22exception%22...%0D%0A%0D [Email Share]( [Push Alert]( SPONSORED [Get Marc's Top 5 Dividend Stocks (FREE PICKS)]( World-renowned income expert Marc Lichtenfeld just released his [Ultimate Dividend Package](. Inside, you'll find his TOP FIVE dividend stocks right now. 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