- Bonds still look pretty attractive, with yields at decent levels and interest rates easing off
- Patience and selectivity might be required, however
It's a sad truth of investing that a 'cheap', unloved asset can stay that way for a long time. UK equities spent several years effectively moving sideways, while Japanese shares had decades in the doldrums. Value investing of any sort can require lots of time and lots of patience.
It's been a similar case in recent years for bonds. A savage combination of high inflation and rising interest rates battered the asset class in 2022 but also managed to bring them back to seemingly 'cheap' valuations, which in turn brought out the bulls.