Don’t Bank on the Safety of Bonds in a Pandemic
Today’s market environment requires that we talk candidly about bonds. While investors over the years have turned to bonds for safety, unfortunately they’ve never been riskier than they are right now.
Over long periods of time, bonds have generated lower returns and lower risk than equities. Bonds also had low correlation with equities, which generates diversification return. Generally, bonds are thought of as safe. Over the last 50 or so years, the 10-year U.S. government bond has produced average annual returns of
