With the stock market on track for back-to-back monthly losses, two market strategists believe it may be prudent to take a look at bonds.
"It's important to have some bonds in your portfolio. Ride out the volatility in the market," Dave MacEwen, co-CIO at American Century Investments, told CNBC's "Power Lunch" on Thursday. He said it's all about "diversification right now. Don't worry so much about yield."
For investors in a high tax bracket, MacEwen recommends municipal bonds. He also favors international bonds, especially ones in Europe and the UK. "There are opportunities there. ECB move is helping European corporate bonds," MacEwen said.
Wasif Latif, head of global multi-assets at USAA Investments, is tactically underweight fixed income, but he likes investment-grade corporate bonds and high-yield bonds.
"We prefer areas of the market that are more credit-sensitive and less sensitive to changes in interest rates," Latif said.
U.S. Treasury bonds pulled back on Thursday following the weekly report on jobless claims. The yield on the benchmark 10-year note bouncing off Wednesday's 20-month low.