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But a 5-10% holding could easily be justified either as an alternative to equities in the "risk" section, or as a yield-kicker in the income section.
Higher rates are anathema to the market because they eat into corporate earnings and make fixed income a more attractive alternative to equities.
Stocks came under pressure as bonds emerged as an attractive alternative to equities amid volatility in the stock market and rising long-term interest rates.
With stocks zigzagging between positive and negative territory, investors are taking a second look at bonds as an alternative to equities.
Long-term interest rates shot up today, but Wall Street analysts say bonds won't emerge as an attractive alternative to equities as long as the stock market remains in record territory.
Similar(55)
What's so frightening right now is that the alternatives to equities are so poor".
However, with volatility almost non-existent, the bond market at historic lows and investors maintaining their dovish view of the Fed, investors have struggled to find alternatives to equities and they remain the asset class of choice.
Such rare instruments are an attractive proposition to investors, then, especially since the stock-market downturn of 2008 led many of them to seek more stable alternatives to equities.
Through it all, alternatives to equities have salvaged some portfolios.
For example, unlike earlier this year when oil and commodities soared as alternatives to equities, stocks such as Monsanto and U.S. Steel were some of the hardest hit Thursday.
Alternatives to equity investment are unattractive because yields are so low.
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