What will the 10-year Treasury be yielding a decade from now?
If you’re like virtually everyone else of whom I ask this question, you believe its yield will be higher then than its current 1.88% — and perhaps much higher. That, in turn, means you believe the 10-year Treasury will produce a loss over the next decade.
That’s an entirely understandable position, and one with which I agree.
But if you are like the vast majority of investors, you also have a significant portfolio allocation to bonds, especially in your 401(k)s. How is that consistent with your belief that Treasurys will produce losses over the next decade?
