How Not to Invest in the Bond Market

Illustration: Alex Nabaum

Investors poured billions into long-term U.S. government funds last year. Right on cue, the market tanked—again.

Only a few things in investing life are certain. One is that investors will always find a way to lose ungodly amounts of money on bond funds.

In 2023, investors poured a record $54 billion into mutual funds and exchange-traded funds specializing in long-term U.S. government debt, according to Morningstar. More than half of the iShares 20+ Year Treasury Bond ETF’s $46.1 billion in total assets, for instance, came in during last year alone.

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This article was originally published on The Wall Street Journal.


Further reading

Benjamin Graham, The Intelligent Investor