Originally published November 22nd 2022
The phrase “Buy Bonds, Wear Diamonds” always struck me as something that would be said by someone already dripping in said precious stones. To be fair, until this year, US Treasuries had had a pretty good run. In fact, US yields have fallen pretty much in a straight line since the was in short trousers. Add in Albert Einstein’s “8th Wonder of the World” (compounding) as well as Treasuries’ traditionally powerful portfolio risk management qualities as a hedge to equities (until 2022!) and all I have left is that they are just a bit boring. Spoken like a true equity guy. Guilty as charged.
