Bonds are Back!
As we highlighted last quarter, we believe the interest rate increases and inflation fears of 2022 have created an attractive opportunity for bond investors for 2023 and beyond. Indeed, being a prudent and diversified “lender” to the Federal Government, corporations, and municipalities now provides investors with the potential to earn mid-to-high single digit total returns, while moderating short-term portfolio volatility. This is a noticeable and welcome change from the fixed income investing landscape that has prevailed since 2007, and we believe many investors have forgotten the important role that bonds can play in long-term investment portfolios.
