You may have heard that now is not a good time to invest in bonds. With low interest rates, you don’t get much of a return. Plus, low rates today mean interest rates can only go up in the future, and you can expect bond prices to fall when interest rates rise. Some investors and analysts have declared death to the 60/40, a traditional portfolio allocation with 60 percent in stocks and 40 percent in bonds, and suggest replacing bonds with alternative investments for diversification. What is myth and what is reality?

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