The Bond Market in 7 Charts

The US Municipal Bond Market (via ETF: MUB)

Down -0.70% YTD (including dividends)
Down -1.4% since July 2016 (including dividends)

The 10-Year US Treasury Note Price Index

Down -3.3% YTD
Down -10.3% since July 2016

The 30-Year US Treasury Bond Price Index

Down -6.3% YTD
Down -19.26% since July 2016

The iShares 20+ Year Treasury Bond ETF: TLT

Down -4.6% YTD (including dividends)
Down -12.65%  Since July 2016 (including dividends)

The iShares 7-10 Year Treasury Bond ETF: IEF

Down -2.2% YTD (including dividends)
Down -8.9% Since July 2016 (including dividends)

iShares $Investment Grade Corp Bond ETF: LQD

Down -3.17% YTD (including dividends)
Down -0.82% since July 2016 (including dividends)

iShares TIPS Bond ETF: TIP

Down -0.46% YTD (including dividends)
Down -0.46% since July 2016 (including dividends)

We have all been told that bonds are the asset that protects our money. But what if bonds aren’t able to be that downside protector in the future?

What if the world is moving into a phase of increasing bond yields and falling bond prices? How can bonds protect if the overall trend is down?

Then what?

Then what is going to protect your downside?

These are the questions that investors must be asking themselves today. And not in two years.

Please remember this. Or write it down somewhere. Assets don’t protect. Strategies do.

In Your Corner,

     
RC Peck, CFP

P.S.  Do you want a strategy that can protect whether bond prices go up or down? Same thing for whether stocks go up or down over longer periods??? If you’d like RC Peck to review your portfolio for potential weak points, you can sign up here.