Higher Yields Make Bonds More Attractive After Recent Losses

Bond prices have plummeted as interest rates rose over the past few years, making high-quality bonds more attractive now.

Despite recent losses, bonds still provide reliable income and portfolio diversification. It's a good time to buy with higher yields.

Bond funds that track broad indexes like the Bloomberg Aggregate have declined 15% recently due to higher yields, but will benefit long-term.

Speculators have driven huge volatility in bond prices lately, causing losses for long-term Treasuries. Stick to diversified funds.

Bond yields and prices are cyclical. With yields now much higher than years ago, losses could reverse in a few years if rates stabilize.