For many decades, financial experts have recommended that people in the United States
who are saving for retirement make investments in a portfolio that includes both stocks and bonds.
The concept was easily understood. Their portfolios went well when the stock market did well, and vice versa.
To illustrate, a fixed deposit (FD) may not be the best way to save for your child's college education
In addition, when the stock market had a poor year, bonds typically performed better
which helped to compensate for the losses.