Noble Apex News

For much of the past decade, the ability of bonds to offer either of these was steadily diminishing. A long bull market compressed yields to record low levels, forcing investors to make an unenviable choice: accept paltry returns by investing in government bonds at ever lower yields, or chase higher yields in lower quality parts of the fixed income universe and take on much more risk as a result?

Some people may want to keep as much cash on hand as possible as they believe there won’t be a steady stream of income for life in retirement. The likely erosion of capital amid market volatility could also cause them to shy away from risk assets. While this may ring true for some people, the return on cash is relatively low and may be insufficient to support a life in retirement if they do not work harder to build their wealth.