bonds proved to be excellent diversifiers with low or negative correlation with common stocks from 1980 through 2014. In my view, there are four kinds of bond purchases that you may want especially to consider: (1) zero-coupon bonds (which allow you to lock in yields for a predetermined length of time); (2) no-load bond mutual funds (which permit you to buy shares in bond portfolios); (3) tax-exempt bonds and bond funds (for those who are fortunate enough to be in high tax brackets); and (4) U.S. Treasury inflation-protection securities (TIPS).
