David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host: What is the Lehman Aggregate Bond Index?
David Marotta: The Lehman Aggregate Bond Index is an index of all of the bonds that are out there. So, it is all bonds and it measures the bond price movements. So in a rising interest rate environment bond prices might be going down and in a lowering interest rate environment bond prices might be going up. So, it measures the Bonds with all of their duration across all the different kinds of bonds.