For most people, a toll road is simply another expense. But that doesn’t have to be the case. Investing in toll roads, or other infrastructure assets, may be an attractive addition to a diversified portfolio.
Passive investing in bonds isn’t as straightforward as it can be in equities. It can also end up creating a portfolio with unintended exposures. Bond investors beware!
Help investors avoid resting on their 2014 laurels. Instead, help them prepare for what is likely to drive markets in 2015.
For those investors intent on finding an alternative to bonds, the pickings currently appear slim, in Russell’s view.
Developed market equities (Russell 3000® Index and Russell Developed ex-U.S. Large Cap Index) and U.S. fixed income (Barclays U.S. Aggregate Bond Index) held up in November 2014 even as central banks in the U.S., Europe and China were making changes to their policies.
Bonds are designed to help preserve client wealth – not substantially grow it. So even when interest rates begin to rise again, Russell believes bonds will continue to play an important role in a well-diversified portfolio.
The adage “Keep calm and carry on” has become ubiquitous but recent market volatility proves the sentiment can be useful for investors, too.