Feature/Asset Class Stocks Bonds
Income Generation Sometimes Usually
Appreciation Usually Sometimes
Tax Efficiency Yes No
Safety of Principal No Usually
From the above table, it's clear that it’s the stability of bonds and their buffer against the volatility of stocks that is their true value in a (Modern Portfolio Theory) portfolio, and that as a result, it’s just as relevant to hold bonds at today’s yields than it ever was, because it’s not about the low yield on bonds, but their continued ability to buffer against the volatility of stocks, which is just as prevalent a risk as it ever was.