Why Bonds Are Still Essential for Diversified Portfolios

President Dwight Eisenhower is often quoted as saying “what is important is seldom urgent and what is urgent is seldom important.” This perfectly captures the challenges many investors face, since it often feels as if every breaking market and economic development is urgent and requires immediate action.

On the surface, the first half of 2025 has been challenging for investors. From a trade war and market correction to an escalating Middle East conflict and concerns over the growing national debt, investors may feel as if financial markets are stumbling from one problem to the next.