Investors are discovering the benefits of “fixed income” investments like bonds, as CEO Jan van Eck extols their reliability, especially in a volatile market. While they may not offer huge growth, they provide predictable returns and lower risk, making them ideal for retirees and cautious investors.

With interest rates remaining high, fixed income investments can provide real returns, with bonds and CDs offering yields that outpace inflation. Van Eck emphasizes the power of compounding returns, illustrating how reinvesting dividends can lead to significant growth and stability in a portfolio.

Despite not being as trendy as other investments, fixed income options are valuable for retirees, risk-averse investors, and anyone seeking portfolio diversification. From bond ETFs to high-yield savings accounts, these assets offer steady income and compounding opportunities, delivering proven performance even during inflation-heavy eras.

Looking back at historical data, Van Eck notes that bonds outperformed stocks during inflationary periods like the 1970s. Today’s environment may be different, but the steady income and compounding forces of fixed income investments remain a solid choice for investors seeking stability and growth.

Read more at Yahoo Finance: Why Investors Should Consider This Under-the-Radar Asset Class, According to a Finance Expert