Over the past five years, bond yields have made a round trip, falling to record lows during the pandemic and then rebounding with the strong economic recovery. More recently, inflation has forced the Bank of Canada and other central banks to tighten policy aggressively, pushing yields higher.
Despite the challenging environment, we believe this adjustment in yields has created opportunities for long-term investors. Investment Grade bonds can still offer valuable income and diversification benefits within a balanced portfolio.
Let’s revisit the case for bonds with some perspective on seven key questions:
Source: FactSet, 4/10/2018-4/10/2024. Past performance does not guarantee future results.
Source: FactSet, 4/10/2018-4/10/2024. Past performance does not guarantee future results.
The graph shows the shifting Bank of Canada policy and the recent rise in the 10-year government bond yield.
Investment Policy Committee
The Investment Policy Committee (IPC) defines and upholds Edward Jones investment philosophy, which is grounded in the principles of quality, diversification and a long-term focus.
The IPC meets regularly to talk about the markets, the economy and the current environment, propose new policies and review existing guidance — all with your financial needs at the center.
The IPC members — experts in economics, market strategy, asset allocation and financial solutions— each bring a unique perspective to developing recommendations that can help you achieve your financial goals.
The Investment Policy Committee (IPC) defines and upholds Edward Jones investment philosophy, which is grounded in the principles of quality, diversification and a long-term focus.
The IPC meets regularly to talk about the markets, the economy and the current environment, propose new policies and review existing guidance — all with your financial needs at the center.
The IPC members — experts in economics, market strategy, asset allocation and financial solutions— each bring a unique perspective to developing recommendations that can help you achieve your financial goals.
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