Bonds just had their worst decade in history. Yields are sitting at 20-year highs.
And I'm buying.
Here's the thing most people miss: bad past performance + high current yields = potentially good future returns. That's not a hot take, it's just math.
When bonds get crushed and yields spike, you're getting paid more to lend. The pain is behind you. The compensation is in front of you.
Bonds aren't exciting. They're not supposed to be. They're the part of your portfolio that shows up when everything else is on fire. They're income. They're ballast. They're the thing that lets you sleep through volatility and rebalance into stocks when they're cheap.
People love bonds at 2% yields and hate them at 5%. Classic.
I'm not saying bonds will outperform stocks. I'm saying they finally offer real yield again, and that matters for anyone building a balanced portfolio.
Don't chase last decade's winners. Buy what's been beaten up and pays you to wait.
And I'm buying.
Here's the thing most people miss: bad past performance + high current yields = potentially good future returns. That's not a hot take, it's just math.
When bonds get crushed and yields spike, you're getting paid more to lend. The pain is behind you. The compensation is in front of you.
Bonds aren't exciting. They're not supposed to be. They're the part of your portfolio that shows up when everything else is on fire. They're income. They're ballast. They're the thing that lets you sleep through volatility and rebalance into stocks when they're cheap.
People love bonds at 2% yields and hate them at 5%. Classic.
I'm not saying bonds will outperform stocks. I'm saying they finally offer real yield again, and that matters for anyone building a balanced portfolio.
Don't chase last decade's winners. Buy what's been beaten up and pays you to wait.