Q: Bonds have been so bad this year. Why should we keep our bonds?
A: The outlook for the bond market has brightened over the last month. Much will depend on where interest rates actually end up (the terminal rate- still to be determined). Inflation will be key to the Fed deciding how much fast rates change, and by how much.
In the meantime, we think the bond market has probably seen the worst, and bonds actually improved over the month of May. When we compare the probable return of low risk assets, like cash, we still think bonds may provide a better way for many investors to find balance in their portfolios.
Your specific needs and goals will determine the most appropriate asset mix for you.