Bonds have had a difficult time in this marketplace. Bonds provide us with a more stable return and stable principle. Bonds have an interest rate that provides income to the investor. Bonds also provide an ability to mitigate or lower the risk of investing in equities or stocks. You want to have different asset classes that behave differently in the same economic event that is occurring at one time. Your only other alternative is to hold cash in lieu of bonds. We look at bonds not for income purposes, but for portfolio diversification.

Casey Smith

President