Why junk bonds right now might paradoxically be a way of reducing risk with stocks at record highs

Core Insights - High-yield bonds historically exhibit half the volatility of stocks and tend to outperform during low-growth periods [1] Group 1 - High-yield bonds have lower volatility compared to stocks, making them a more stable investment option [1] - The performance of high-yield bonds improves during economic downturns or low-growth periods, indicating their resilience [1]