As a result, income investments had a less-than-spectacular summer. The price of the 10-year Treasury note slid by more than 12%, and the prices of “bond substitutes” such as utilities and certain classes of REITs fell by significantly more.
It’s frustrating to see a decade’s worth of income disappear in a matter of two months due to capital losses. And the prices of income-paying investments will probably stay volatile until the Fed clarifies its intentions on quantitative easing.
We might get some concrete guidance from Bernanke as soon as this month. But regardless of what the Fed does, we all have retirements to plan for. Today, I’m going to look at four asset classes that all investors need in their retirement portfolios.