Bonds Aren’t Simple: Five Traps Investors Need to Dodge

Stuart Kirk argues bonds are widely misunderstood, outlining five traps to avoid: (1) believing bond markets are omniscient or smarter than stocks, (2) comparing bond yields with earnings yields, (3) thinking rising long‑dated yields reflect debt concerns, (4) relying on the five‑year forward inflation rate to gauge long‑run inflation, and (5) conflating real yields with inflation‑linked bonds due to distortions. He notes that inflation expectations and real yields matter far more for true borrowing costs, and while many bond managers underperform, the topic remains crucial for savers and policymakers alike.