As the Federal Reserve cuts interest rates, investors should review their bond portfolio, which could see a boost from dovish Fed policy.
However, the Fed policy shift could be good for parts of the bond market, experts say.
Typically, bond prices and market interest rates move in opposite directions.
"This is a fantastic time to revisit bonds again," said certified financial planner Scott Ward, senior vice president of Compound Planning in Birmingham, Alabama.
While it may be tempting to cling to cash, it will become "less attractive, less productive as interest rates fall," Ward said.
Persons:
Scott Ward, Ward
Organizations:
Federal Reserve, dovish Fed, Finance, SEC, Fed
Locations:
Birmingham , Alabama