During the depths of the financial crisis, I sold most of my treasuries and bought stocks and high yield debt. When high yield recovered, I sold and bought more real estate.
Effectively, real estate (with modest leverage) replaced my bond portion of the portfolio. I know they behave very differently but do produce income. Really the only thing they have in common.
I’m more and more convinced that the 10 year will top out at most 3%.
For many purposes, that would be enough to put 30% back in intermediate treasuries with a 5-7 year duration which would likely yield about 2.5%. That would cover about 75% of my fixed rates which average 3.3%.
