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  • Michael Livian, CFA and Martin Fridson, CFA

Why Now Is the Time to Stand By Bonds



In the ever-fluctuating world of finance, there's always an investment vehicle that stands out. Despite the recent wavering of fixed-income securities, it's time for investors to look again at bonds. A deeper dive into this is captured in our latest white paper, which we invite you to explore. But first, let's underline some pivotal points:

  • Historical Heights: The 10-year US Treasury Bond Yield stands at 4.25%. To put this in perspective, this rate has been very infrequently observed in the last 20 years and matches the median level over the past half-century.

  • Waning Inflation: Remember those inflationary concerns during the pandemic? Many of those catalysts are dissipating. As these factors fade, we're likely to witness inflation continue moderating.

  • The Predictive Power of the Starting Yield: Historically, the initial 10-year bond yield has been a significant indicator. It often sheds light on the potential returns of fixed income over the ensuing years. The message? The current yield could be forecasting brighter days ahead for bond returns.

It's true that income securities haven't been the shining star of portfolios in recent times. However, current factors and trends suggest a rekindled promise. The time to stand by bonds is now, and the reasons are clearer than ever.


Want to know more? Dive into our white paper's numbers, charts, and in-depth analysis: "Why this is about the worst possible time to give up on your fixed income portfolio."



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