Japan's 10+ year government bond total return index has collapsed -40% from its August 2019 peak.
This index captures both price changes and coupon income, showing mark-to-market losses for institutions required to value holdings at current prices.
While principal is returned at maturity, the unrealized losses along the way are massive for balance sheets.
The relentless decline has erased all gains between 1996 and 2019...
@optimism
Here is your bond performance
I'm still not sure where you saw me saying you should buy bonds but keep at it lol
Im too lazy to find the post but you were making the case that bonds were not the worst for preserving capital.
Naw... I made the case that 30-40 years ago bonds were where your retirement package would put 25% of the allocation "to be safe" and I agreed with Dalio that this is now better swapped for gold (or bitcoin, but only if that isn't your primary MoE).
All the uber-rich already did this the past couple of years (now you know what causes that graph) and now pension funds for normies are stuck posting losses because they can't sell the long term debt from the ZIRP era on the market and have to hold to maturity (which is getting more and more likely to be defaulted on across the globe.)
The problem is that gold is front-ran too by now, tech is in a bubble. Personally I have swapped bonds for "boring" ETFs in my pension package - the wisdom of that remains to be seen though haha
Yeah and my point is 30-40 years ago that is a losing position. People trust banks and bonds more than they do Saylor.
It works for people who are already rich it sucks for everyone else who isn’t.
Yet financial advisors like Ray himself were praised for the 60/40 portfolio when I think over the last 30/40 years you got absolutely crushed by those who when all in with risky tech stocks
If 30 years ago you bought risky tech stocks you got rekt too lol
Haha yeah like pets.com haha