MI230: Buffett Indicator Says Stock Market is Overvalued w/ Lance Roberts
The Intrinsic Value Podcast - The Investor’s Podcast Network
00:00
Why High Net Worth Investors Buy Bonds
When I'm going to buy any investment, you can only have two of three factors. The reason that high net worth investors buy bonds is because they lower the volatility of your portfolio and give you a guaranteed rate of return. So when I look at cash in my portfolio, what does that give me? That gives me safety and liquidity. It allows me to buy something at a deep discount in my portfolio. To make a worthwhile investment,. If I own stocks, that's great. I have liquidity in return, but I have no safety. If I buy bonds, I have safety and I have return, but we don't live forever. We need to make decisions based on our financial goal
Transcript
Play full episode
