Bond investors have spent much of the past several years learning a painful lesson: Bonds can lose money, too. Now, the same dynamics that caused those losses may be reversing to create a potentially much more attractive opportunity.
We know that Treasury yields are back on the rise. The 10-year yield is still up around 4.65% and the 30-year briefly moved above 5.3%, its highest level since 2007. For investors who remember the zero interest rate during much of the 2010s, those yield figures can't be ignored.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Does that mean it's finally time again to buy bond exchange-traded funds (ETFs)? I think the answer is yes. But do you go with corporates, Treasuries, or a mix of both?
The Federal Reserve's aggressive rate-hiking cycle a few years ago created an unprecedented bear market in bonds. The Vanguard Long-Term Treasury ETF (NASDAQ: VGLT) is still nearly 40% below its all-time high on a total return basis. But the environment today is different.

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