Resource to better understand bonds?
Would you guys mind pointing me towards a resource where I can read about how bonds form any portfolio and why they help “smooth the ride”?
I think I need to learn a little bit more about asset allocation and understand the actual function of bonds in the portfolio. I know this gets discussed here quite a bit, but I still haven’t been able to wrap my head around it.
It makes sense to me that in a vulnerable stock market or during periods where there is a down turn having more of a fixed portion of your portfolio or something that isn’t exposed to that volatility as much makes sense at the surface level.
I think there is another aspect of this that I do not grasp yet which is why bonds may actually perform better during periods like this or inversely to a downturn or extremely volatile equity market.
If anyone knows a good resource, I can share it with me. That will help explain this better to an idiot like me and what levers are actually getting pulled here. I would really appreciate it to help inform some decisions for down the road.