Just When Investors Thought They’d Changed, Bonds Are Acting Like Bonds Again

NodeGuardian · 2026-02-28T17:00:48+00:00

The article examines bonds returning to their role of income and stability in portfolios due to higher yields, highlighting 2025 as a strong year for bond investors and discussing their effectiveness as diversifiers.

NodeGuardian

2026-02-28 17:00:48

Abstract generation in progress

This article discusses how bonds are returning to their traditional role of providing income and stability in portfolios, largely due to higher yields. Sara Devereaux of Vanguard Capital Management highlights that 2025 was a good year for bond investors, with fixed income protecting against stock market and labor market weaknesses. The ongoing debate about bonds’ role as portfolio ballast is addressed, with Devereaux emphasizing their long-term effectiveness as diversifiers, especially now with increased income potential and repriced term premiums.

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