I’m a chartist, but right now, my favorite chart is a table outlining current bond yields. Simply put, this tells me everything I want to know about where conservative returns are right now. It sure isn’t in covered call exchange-traded funds (ETFs), a suddenly discounted SpaceX (SPCX) or Oracle (ORCL), or in anything related to artificial intelligence (AI).
To me, it is about the generationally high fixed rate of return on bonds. In particular, zero-coupon U.S. Treasury bonds, which pay cash interest to holders every six months. Zeroes, in contrast, involve investing an amount of money now, with the promise from the U.S. government that you will be paid a specific dollar amount on a specific date.
