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No. of Recommendations: 15
https://www.fidelity.com/learning-center/trading-investing/m...
Be proactive about inflation...


It says in part:
"Even now, there are investments in our diversified portfolios that could provide some
protection from inflation if there are any inflation surprises in the near term," Malwal says.
"Exposure to stocks could be helpful. So could the diversified exposure within our bond allocation.
This includes TIPS, high yield bonds, corporate bonds, commercial mortgage-backed
securities, and some overseas bonds."


Kinda hilarious, in a very sad sort of way.
I would be *very* much surprised if anything in the bold section had any possibility of a positive real return.
Hey, let's pay money to lend to the Greek government for the next five years! (true, believe it or not)

The TIPS won't get any worse with rising inflation, but they start with a negative yield.
So you're guaranteed to lose money, it's just that the amount you lose won't rise higher than what you foolishly agree to on purchase date.

Any other kind of bond will lose because of the negative real yield on purchase date, and lose more and more as inflation rises.

The high yield might seem a possibility, but junk yields are near record low in both absolute and spread terms. High yield isn't high yield any more.
Without a cushion of a high coupon, it's pretty likely they will lose money. They're junk, after all.

And of course all of those comments are before the additional drag of any fees.

You'd sort of hope that a shop with a reputation like Fidelity would be able to admit the obvious truth: There is no case at all for bonds these days.
Theoretically there may be exceptions, but with millions of investors reaching for yield you have to be smarter than the rest of the world to spot 'em: probably not gonna happen.
And bond funds will all be worse.

Cash or stock or private businesses.

Jim
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