Reddit reviews Predictably Irrational: The Hidden Forces That Shape Our Decisions

In the current market bonds are mostly a way to dampen volatility of your portfolio. That is a bit how Markets work though... some times certain pieces of a balanced portfolio underperform or overperform.

Anyway, some very smart people argue that in the current market it's better to just use CDs as the 'fixed income' part of your portfolio for various reasons, so there's a good chance my own strategy isn't the absolute best.

I would argue it's still wise for anyone to have some diversification in their portfolio as a way to reduce volatility, but maybe that's just because I realize I'm not a a perfectly rational person.

I recently read this article with some interesting insights into asset allocation and how it affects portfolio performance and volatility and would recommend at least considering its message. A small allocation (let's say 10-20%) in 'fixed income assets' isn't likely to be a very big drag on your performance but can reduce volatility significantly if rebalanced every now and then.