When Bond Yields Finally Look Good, Is an All-Bond Portfolio the Smart Move?
A reader writes in with a question that would have sounded strange a few years ago: if a high-quality bond can now pay enough to hit my long-term return target, why keep any money in stocks at all? It’s a fair question, and it deserves a careful answer rather than a reflexive one. The honest response is that a good nominal yield solves one problem — getting paid a known rate today — while leaving several other problems completely untouched. Understanding the difference is the whole game.