Portfolio kryptonite (Patreon)

U.S. Treasury bonds considered one of the safest investments because they are backed by the "full faith and credit" of the U.S. government. The chart shows the 10-year rolling annualized returns (%) for U.S. 15-year+ Treasury bonds from 1936 to May 2025. They just had the worst run in 90 years.

Many TradFi firms, asset managers and pension funds, include U.S. Treasury bonds in a 60/40 portfolio—a common strategy where 60% of the portfolio is allocated to equities (stocks) and 40% to fixed income (bonds). This 40% allocation which is for safety ACTUALLY bleeds money!!!!

Bonds are toast. This chart alone prompts a rethink of asset allocation - and as I have also said for years... the 60 / 40 is DEAD!

“asbestos wrapped up in a coupon “