Part 6/10:
While many experts are shifting their strategies, I believe that certain traditional assets, like long-term US Treasury bonds, are losing their appeal. The primary reason is that their guaranteed yields (around 4-5%) are below the true rate of inflation, which many sources suggest is closer to 6%—double the government-reported figures.
Why Are US Treasury Bonds a Losing Proposition?
Locking in a 4-5% yield over 30 years while inflation eats away at returns results in negative real returns. You’re effectively losing purchasing power each year, making long-term bonds an unwise investment in this environment. Short-term Treasury bills are different, suitable for parking cash temporarily, but long-duration bonds seem increasingly risky.