With interest rates and yields where they are ... why own them?
With Bonds... are you/we managing for the exception vs. the rule?
I'm starting to believe we are. I own several bond funds JIC (just in case) - but for the last 10 + years it was a bad mistake. Perhaps Buffett is correct: "Bonds are not the place to be these days...” in his recent annual letter. So - asking the community here: Why are we smarter than Buffett?
With bonds barely outpacing or not outpacing inflation... even those focused only on income -why would you or do you own them? https://www.theceomagazine.com/business/finance/berkshire-hathaway-warren-buffett/
This is a person I follow and offers somewhat of an explanation why I have a "limited" exposure to bond funds: https://ofdollarsanddata.com/why-buy-bonds-now/
<--- That said, it still begs the question on whether we are managing for the exception vs. the norm. "Returns for the next decade are looking grim" says the author.
Edit: Adding this link: https://www.captrust.com/even-with-low-interest-rates-your-portfolio-still-needs-bonds/
Reading this post promoting diversification with bond funds ... it contains so many caveats "Given our lower-for-longer view on interest rates, our expectation for bond returns over the next few years is muted." + "With interest rates near zero and unlikely to move much in the foreseeable future, performance prospects for high-quality fixed income look unappealing." ... It's enought to confuse even the brightest investor.