As volatility affects stocks and bonds, you might find yourself questioning your investment decisions. While we can’t control or predict how the market will behave at any given time, a well-balanced portfolio, with diversified holdings across asset classes, can help smooth out the ride. From 2000-2019, a balanced portfolio consisting of 60% stocks and 40% bonds provided provided nearly all the upside of stocks but with much less volatile returns.
A Balanced Portfolio Provided Nearly All the Upside of Stocks
|2000-2002||-37.6%||33.5%||-6.4%||"Why do I own stocks?"|
|2003-2007||82.9%||24.2%||51.8%||"Why do I own bonds?"|
|2008||-37.0%||5.2%||-15.9%||"Why do I own stocks?"|
|2009-2017||258.8%||40.7%||129.8%||"Why do I own bonds?"|
|2018||-4.4%||0.0%||-2.2%||"Why do I own stocks?"|
|2019||31.5%||8.7%||20.1%||"Why do I own bonds?"|
|Growth of $100k||$324,209||$266,866||$322,848|
Stocks represented by S&P 500 Index; Balanced Portfolio represented by 60% S&P 500 Index and 40% Bloomberg Barclays US Aggregate Bond Index; Bonds represented by 100% Bloomberg Barclays US Aggregate Bond Index
Past performance does not guarantee future results. For illustrative purposes only. Indices are unmanaged and not available for direct investment. Source: Morningstar and Hartford Funds, 1/20.
Talk to your financial professional about how you can build a well-balanced portfolio.
S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
Bloomberg Barclays US Aggregate Bond Index is composed of securities from the Bloomberg Barclays Government/Credit Bond Index, Mortgage-Backed Securities Index, Asset-Backed Securities Index, and Commercial Mortgage-Backed Securities Index.
Important Risks: Investing involves risk, including the possible loss of principal. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Diversification does not ensure a profit or protect against a loss in a declining market.
This information should not be considered investment advice or a recommendation to buy/sell any security. In addition, it does not take into account the specific investment objectives, tax, and financial condition of any specific person.
Additional Information Regarding Bloomberg Barclays Indices Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.