The S&P 500 is down more than 11% while the iShares 20+ Year Treasury Bond ETF, a popular fund for bond investors has plunged 22%. “Bond investors are expecting the economy to cool down, but equity investors are still looking at decent earnings. “A 60-40 portfolio is not properly positioned in periods such as this where inflation is running hotter than bond yields,” he added. Bonds are still a great source of income and diversificationStill, there’s probably a case for some bonds in a retirement portfolio. Long-term bond yields should keep climbing if the Fed continues to boost short-term rates.

Source: CNN August 11, 2022 17:56 UTC