- The recommended portfolio split is still 60% stocks and 40% bonds, which is a terrible split if you ask me.
- I’ll show you the current risk reward bonds have and what you can expect from them in the future (treasuries and junk bonds).
- There are two situations with owning bonds that aren’t such a bad idea.
The Current Bond Environment
Bonds, as stocks, have been in a bull market for the last 35 years because interest rates have been on a constant decline.
Since 1981, a 10-year Treasury bond portfolio has returned 14.6 times its initial capital. More →