Dec. 28 at 12:41 PM
$DLY $BGT $VCIT $NMCO $NUV
Fixed income could outperform the broader market over the next decade due to significantly higher starting yields (offering rich income streams), potential central bank rate cuts boosting bond prices, strong demand from income-seeking investors, and their classic role in diversifying equity risk, especially if economic growth slows or inflation moderates, creating a favorable backdrop for bonds to provide capital preservation and income alongside potential capital appreciation from falling rates.
Elevated Yields: After years of low rates, current yields on many bonds (like Treasuries and Munis) are the most attractive in a generation, providing a strong income foundation.
Diversification & Stability: Bonds provide crucial portfolio diversification, capital preservation, and liquidity, especially during equity market volatility.
There’s many reasons I’m restructuring my
Portfolio, but capital preservation is probably the #1 reason.