From Morningstar: 2024-08-20 05:58:00

Bond yields have been on a rollercoaster, dropping amid economic concerns. Despite stabilization, yields remain 1% lower than in April. Schwab’s Kathy Jones predicts further drops but warns against impulsive decisions. Bonds are fulfilling their role as a safe haven during market volatility, with stock and bond prices moving in opposite directions.

Investors should expect lower yields as the Fed eases policy. Jones advises against chasing price appreciation and suggests finding opportunities outside Treasury bonds. She emphasizes focusing on coupon payments for long-term success. Timing the bond market is risky, and investors should avoid selling low to prevent missed returns.

Bond ladders can provide portfolio stability amidst falling yields. Jones encourages rebalancing portfolios and reinvesting in bond ladders as a long-term strategy. While peak yields are likely behind us, it’s important to stick to the investment plan and maintain a diversified bond portfolio for steady income over time.



Read more at Morningstar: Avoid This Big Bond Investing Mistake