Bogleheads On Investing Podcast cover image

Episode 057: Dr. Derek Horstmeyer on multiple investment topics, host Rick Ferri

Bogleheads On Investing Podcast

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The Benefits of Credit Risk in the Bond Market

High-yield bonds don't have a perfect correlation with the S&P. What it's doing is slightly diversifying your positions. We also noticed it had less crash risk. So I think this research would highlight that taking some credit risk in the bond market is appropriate for the year S&P 500 returns over the long run.

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