Bond Investment: A Path to Returns Beyond Traditional Beliefs

Many people’s first impression of bond investment is its high stability but limited potential for returns. However, looking at the performance of the U.S. 20-Year Treasury Bond ETF (TLT) in 1819, we notice a 35% increase in its value within a year. Such performance does not fall short compared to stocks, especially considering the stability of government bonds.

Advanced strategies in bond investment can yield higher returns, but many retail investors are not familiar with this area. In the past decade, even without understanding bonds, relying solely on stock investments could yield decent returns. However, with the Federal Reserve’s rapid interest rate hikes and the ongoing threat of inflation, financial markets have undergone systemic changes. These changes are likely to continue for an extended period, significantly enhancing the yield of bonds compared to stock investments. The upcoming year 2024 is also being touted by many institutions as the year of the bond’s rise. If you do not understand how to invest in bonds now, you may miss out on a consistently substantial return. Therefore, this article is dedicated to systematically introducing how retail investors can seize this epochal investment opportunity in bonds.

The knowledge about bond investment is vast and complex. I will introduce what I believe to be…