Five Reasons It’s Time To Buy Bonds Again

Saturday, December 21, 2013

Bonds in 2013 finally got their comeuppance. After a long, pleasing ride of income + price gains, the bond market decided the party was over. It only took four months for the 10-year U.S. Treasury note to drop the equivalent of over five years’ interest. All but the shortest maturities suffered similar fates.

So why should we expect that we’re safe again? Couldn’t 2013’s drop be the harbinger of worse to come? Like gold, mightn’t we be entering a secular bear market in bonds?

Here are the five reasons why bonds can be bought now with confidence and safety…

This article is published on Forbes.com

 

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