Sometimes a follow-up to a concept helps drive the point home. Since my last post on this topic the 10 year US treasury yield has risen….again…
Now no one knows where yields are going but one thing is pretty apparent. Had you purchased a bond at almost any time over the last 2 years you would be looking at a negative rate of return. I will leave the answer of the above question to you but the data does make one question the conventional wisdom.
Thanks to our friends at First Trust Portfolios for providing the following chart.