Global Bond Calamity Calls for a Calm Perspective

Are rising government bond yields signaling economic trouble ahead? Pundits say so, arguing multi-decade-high 10- and 30-year yields across the developed world foretell hot inflation and government debt troubles, making bonds (and probably eventually stocks) an iffy prospect. But hold on. We think these fears lack context and perspective. Long-term bond yields’ recent “spike” is benign historically, and bonds—like stocks—are prone to wobble on false fears. Nothing about this suggests bonds will fail to serve their primary roles of mitigating volatility and supporting cash flow needs. Read Full Article »