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Joe Anderson
ABOUT Joseph

As President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Since interest rates are at all-time lows, does that mean we should sell the bonds in our portfolio? What’s the advantage of holding bonds in a low interest rate environment? Joe answers this viewer’s question in 60 seconds.

Important Points

0:09 “We certainly believe in the asset allocations; we have approximately 40%-50% in bonds. With bonds doing so well over the past thirty years, I’m concerned with the direction of the bonds and [wondering] if perhaps we should put more into other equities”

0:32 “We’re in a huge bond bull market because when interest rates go down, bond prices go up. So interest rates are basically at all-time lows”

0:47 “You have to look at bonds a little bit differently; you want to look at bonds to damper the overall volatility of the overall portfolio”

0:55 “Depending on what your time frames, your goals and everything else is, you don’t want to look at bonds as an income stream potentially…you want to look at a total return portfolio”

1:09 “You absolutely want to make sure that you have some safety in your overall portfolio. 40% in bonds sounds reasonable; the other 60% in equities you want to make sure that it’s globally diversified – when equities go up your bond prices are going to stay straight. When equities go down, your bonds are going to save you”

1:24 “You definitely want to keep bonds in your portfolio even in a low-interest environment”

1:37 “The key I would say is look at a total return, don’t look at each individual asset class”