Bond Funds vs Two Year Treasury

In today's video, I discuss why I’m skeptical of bond funds and bond ETFs in the current interest-rate environment—and why I think two-year U.S. Treasury Bonds deserve a closer look. With inflation proving sticky, energy prices facing potential pressure, and the market potentially underestimating how many Federal Reserve rate increases we could see through 2027, I think bond investors need to pay close attention to duration risk. Bond funds and ETFs don’t mature the way an individual bond does, so their duration risk continues as the funds roll maturing bonds into new ones. That can make rising interest rates a particularly difficult environment for traditional investments. For investors balancing a portfolio, I think two-year Treasuries offer an interesting alternative right now. Yields are relatively close to those of longer-term Treasuries, while the shorter maturity makes it possible to hold an individual Treasury bond to maturity and receive the full principal back, assuming the U.S. government meets its obligations. In the video, I discuss how I think this effects the traditional 60/40 portfolio, why gold may be taking on a new role in portfolio diversification, and how investors can think about managing bond exposure when rates are rising. Make sure to subscribe for more stocks and economic news daily: Substack: economicsforinvestors.substack.com Subscribe for free daily posts and articles: Jubakpicks.com More in-depth tips for asset management: jubakam.com Two-Year Treasury, 2-Year Treasury, Treasury Bonds, U.S. Treasury, Treasury Yields, Bond Funds, Bond ETFs, Bond ETF Risks, Duration Risk, Interest Rates, Rising Interest Rates, Federal Reserve, Fed Rate Hikes, Inflation, Sticky Inflation, Fixed Income Investing, Bond Investing, Portfolio Strategy, 60/40 Portfolio, Portfolio Diversification, Gold Investing, Investment Strategy, Income Investing, Jim Jubak, Jubak Picks, Jubak Asset Management, Economics for Investors #treasurybonds #bondinvesting #interestrates #federalreserve #investing