User 328725

Is Buying Bonds Really a Good Idea?

There are plenty of areas in fixed income that have record spreads available.

Aside from that, during periods of deflation (like now) the real rate of interest rises, sometimes dramatically as it is now.

For example, in the 3 months to November, CPI fell at a 10.4% annualized rate. So if your AAA corporate paper earned 5.5%, your real rate of return over the period was 15.4% annualized.