Fixed income can play an important role in diversifying a portfolio, allowing it to better withstand continued volatile and uncertain markets. But several myths may be keeping you from taking action. Let’s take a closer look at the reality that should inform your decisions.

Myth #1  There’s a bond bubble
One myth is the belief that fixed income is a bubble waiting to burst, given the hundreds of billions of dollars that have moved into the asset class over the past two or three years. However, despite these healthy flows, global portfolio weightings to fixed income appear to be no larger than their historical averages of around 30%. In our view, this doesn’t point to an over-allocation to the asset class.