New York (CNN Business) Is it smart to buy bonds over stocks?

Unless you are extremely risk averse or depend on a steady stream of income for your daily expenses then it may not make sense to buy bonds instead of stocks. The stock market historically outperforms bonds over the long run.

But bonds offer a degree of safety — particularly during times when investors are nervous about the broader economy, earnings growth and stock market valuations. Look no further than the fourth quarter of 2018.

"It's common for folks to look at bonds as a ballast at times when stocks aren't doing as well," said Eddy Vataru, senior portfolio manager of the Osterweis Total Return Fund, which invests primarily in investment grade bonds.

"For the average investor, fixed income can serve an important function," he said.

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