have bonds a “meme moment” on Reddit, Bloomberg reported.
A caveat first: the trend is not comparable to WallStreetBets and its meme stock frenzy. The r/bonds subreddit forum only has about 8,000 members, not 13 million. But the fact that laypeople are talking about bonds is still a remarkable development for an asset class that never sparked much enthusiasm among retail investors – or anyone, to be honest.
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At its core, bonds are notes of government or corporate debt – except these notes can be traded (the BBC has a good Econ 101 explanation on the subject). But to keep it simple, let’s say that bonds are debts. And debt is boring, right?
Well, for most people, making money is never boring. When inflation is high and stock markets are volatile, it means we need to look for new sources of return and diversification. We’ve already looked at how this created tailwinds from alternative assets, such as passion investments.
Bonds aren’t exactly alts – the once golden 60/40 portfolio rule used to recommend owning 60% of stocks and 40% of bonds. But it’s fair to say that fixed income products like bonds are enjoying renewed interest, with Goldman Sachs earlier this month wondering if it was “time to move from stocks to bonds.”