Time to Rebalance Your Portfolio, Boomer

(Bloomberg) --

It was a fabulous year to be invested in stocks or bonds. But what’s in store for 2020? Nela Richardson, an investment strategist at Edward Jones, joins the “What Goes Up” podcast alongside Bloomberg columnist Cameron Crise to give their outlooks.

Richardson says a lot of older clients are reluctant to make less risky investments due to the huge returns they’ve enjoyed in 2019. Meanwhile, the rally in bonds has pushed interest rates down and made the returns on fixed-income look unappealing. 

“As [older investors] transition from accumulating assets to disbursement of assets in retirement, they’re concerned about the really low interest rate environment we’re in, and the high price of bonds,” Richardson says. Nevertheless, she says that older investors should “probably be taking some risk out of the market and rebalancing.’’ 

Mentioned in this podcast:
Yield Curve Hits Steepest Since 2018 as Inflation Risks Eyed
Maybe It’s Time to Start Worrying About Euphoria in U.S. Stocks

To contact the editor responsible for this story: Topher Forhecz at tforhecz@bloomberg.net, David Rovella

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