Should You Buy Bonds Now? What To Consider

The fixed-income market has been turned on its head in recent years, but there are still opportunities for those looking to buy bonds again.

Bond ratings
(Image credit: Getty Images)

The interest rate environment changed dramatically – and quickly. So is now the time to add bonds to your portfolio? It's not an easy call.

First, a little history. For a decade or so, owning bonds with maturities of five, 10 or 20 years made little sense. For the 10 years ending in June 2022, the yield on a 10-year Treasury was nearly always less than 3% – well below that of the stocks of the Dow Jones Industrial Average. Even investment-grade corporate bonds were paying paltry interest. 

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James K. Glassman
Contributing Columnist, Kiplinger's Personal Finance
James K. Glassman is a visiting fellow at the American Enterprise Institute. His most recent book is Safety Net: The Strategy for De-Risking Your Investments in a Time of Turbulence.