Duration matching: should you match your bonds to your time horizon? [Members]

For MAVENS and MOGULS by The Accumulator on August 15, 2023

The standard advice for passive investors is to match the duration of your bond holdings to your investment time horizon. Sensible enough – but, like many an oft-repeated heuristic, this duration matching strategy has been boiled down from a rich broth of nourishing guidance into a thin soup that amounts to empty calories for most people.

So let’s take a fresh look at duration matching’s nutrition label and find out:

This article can be read by selected Monevator members. Please see our membership plans and consider joining! Already a member? Sign in here.