have a bond Bloomberg reported on Reddit that a “memetic moment” occurred.
First caveat: this trend does not equate to the craze of WallStreetBets or their memetic strains. The r/bonds subreddit forum only has about 8,000 members instead of 13 million. But the fact that laymen are talking about fixed income is still a notable development for an asset class that hasn’t seen much enthusiasm from retail investors or, let’s be honest, from anyone.
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In essence, bonds are government or corporate IOUs, but these IOUs are tradable (there are excellent commentators on the topic on the BBC’s Econ 101). And debt is boring, right?
For most people, making money is never boring. When inflation is high and stock markets are volatile, this means looking for new sources of yield and diversification. We have already explored how this creates tailwinds from alternative assets such as passion investments.
Bonds aren’t exactly an alternative — the golden 60/40 portfolio rule used to recommend owning 60% in stocks and 40% in bonds. However, it is no exaggeration to say that fixed income products such as bonds are attracting renewed interest.
