Another Bond Market Conundrum? | Seeking Alpha

Another Bond Market Conundrum? | Seeking Alpha



This is an excellent article on why long-term treasury bonds have low yields.  One reason given was the deflation in Europe due to economic and security issues there since the Russia-Ukraine conflict is far from being resolved although the author did not actually mention the conflict.  He just talked about economic issues.



Secondly, another reason that investors are buying long-term bonds is that many people think that the stock market is at a top here in the U.S. Therefore, they are buying bonds for protection.  The author seemed to think U.S. conditions were improving, but Europeans were attracted to U.S. treasuries.  His discussions of economic issues and bond basics were very good.  In view of these fundamentals, it would be a good idea to own some bonds now as part of a diversified portfolio.  I own TLT and TMF for some protection while I am long on high-paying dividend stocks like ARR and MORL.