We can, however, look back at the performance of various treasury bonds to see how they performed in the last
real bond bear market.
Not exact matches
More chilling still is the -4 %
real loss p.a. that occurred over the worst 30 years of UK
bond investing history or the 47 years it took to recover the
real purchasing power of your
bonds lost during the
bear market of the 1940s to 1970s.
I know it's hard for most of you to believe that Gold and Silver will surpass their old January 1980 highs, but that is what a 20 + year generational
bear market will do to a whole generation of investors who have grown up with falling
real assets (Gold, Silver and commodities) and rising paper assets (stocks and
bonds).
A diversified portfolio (including
bonds,
real estate, etc.) will minimize damage during
bear markets, leaving more of a portfolio intact compared to just owning equities.
Nor should we ignore the very
real possibility of a
bear market in
bonds, perhaps with a couple of years of negative returns.