Bonds: Hedges or Risky Opportunities?

Both. Long-term bonds are a great hedge against financial crises, for investors who can’t afford to wait. do great. Bonds do terribly if the government inflates away debt, and well in a disinflation. Alphas and stock market betas are a terrible way to think about bonds and their place in a portfolio. An essay for the Fiduciary Investors Symposium at Stanford, September 19 2024. Read the essay.