Bond, especially country level, usually is considered safe haven, therefore bond prices have been climbing up over past 4 decades (since the major correction in 1980s), resulting in extremely low bond yield, eg. only 0.74% for 10 years US treasury yield (dip due to 0.5% interest rate cut recently) while Singapore Saving Bonds is 2.12% for 10 years, how to fight against inflation which is average 2-3% yearly?
When global investors are afraid of stock market (not so bullish), then there is demand for bond, then it may not easily crash even prices are very high with little yield. However, when bond yield is so low (near to 0%) and there is increasing inflation, then money may escape from bond market to consider other higher risk and higher potential return market (eg. stock or property).
In general, corporate bond (especially with giant stock and strong business fundamental) is a better choice than country bond (yield is too low, safety could not justify the investment for long term) but focusing on short term bond (less than 12 months) to minimize the risk of possible bond market meltdown in future.
For bond, focus is more on safety (against risk of default) vs return (bond coupon rate). For stock, focus is on capital gains through business growth with consideration of share price which affects the investment yield. A smart investor would integrate stock and bond analysis through the common business. Focus mainly on giant bonds with giant stocks.
Cash is King when an investor has the capital to invest at the right time. However, when waiting period is too long, cash could only get little return (eg. bank interest of 1-2%). So, a balance is needed for percentage of cash (opportunity fund), stocks (especially holding for longer term investing to collect dividend with capital gains) and bond (for stability, either in stronger corporate or countries).
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