A year ago everyone was dunking on bonds and pitching the "60/20/20" — cut your bond allocation in half, throw it into gold and $BTC instead. The argument? Stock-bond correlation broke, so bonds are useless for diversification.
Fast forward 12 months. Bonds did exactly what they're supposed to do when markets got choppy. Gold worked. Bitcoin worked. But bonds also worked — and with way less volatility.
The real lesson: diversification isn't about chasing what's hot. It's about owning uncorrelated assets that behave differently when things break. Bonds aren't sexy. They're not supposed to be. They're the boring anchor that lets you stay in the game when everything else is puking.
Ditching bonds because "this time is different" is how you end up overexposed when correlations flip again. And they always flip.
Fast forward 12 months. Bonds did exactly what they're supposed to do when markets got choppy. Gold worked. Bitcoin worked. But bonds also worked — and with way less volatility.
The real lesson: diversification isn't about chasing what's hot. It's about owning uncorrelated assets that behave differently when things break. Bonds aren't sexy. They're not supposed to be. They're the boring anchor that lets you stay in the game when everything else is puking.
Ditching bonds because "this time is different" is how you end up overexposed when correlations flip again. And they always flip.