Bonds Look Strong
Investing in bonds didn’t pay off in 2022, but three factors may combine to change that this year
Even though equity markets declined by double digits last year—more than 20% in some cases—the bond market didn’t provide a bastion of safety.
In fact, the S&P U.S. Aggregate Bond Index was down more than 11.5% at the end of the year. From U.S. treasuries to investment grade to high yield, it was a bad time through and through.
But the disappointment of 2022—spurred by multi-decade highs in inflation and the most aggressive central bank rate hike cycles since the 1970s—may be a relic of the past.
The groundwork is laid for 2023 to be a better year for bonds, especially for U.S. treasuries, including two-year (/ZT), 10-year...
