• KevonLooney@lemm.ee
    link
    fedilink
    arrow-up
    1
    ·
    7 months ago

    bonds are a hedge against inflation

    This is incorrect and harmful to people who read it. See below:

    Inflation is a bond’s worst enemy. Inflation erodes the purchasing power of a bond’s future cash flows. Typically, bonds are fixed-rate investments. If inflation is increasing (or rising prices), the return on a bond is reduced in real terms, meaning adjusted for inflation.

    https://www.investopedia.com/articles/bonds/09/bond-market-interest-rates.asp

    • Clent@lemmy.world
      link
      fedilink
      arrow-up
      3
      ·
      7 months ago

      Still not true. I Bonds.

      Do not trust anyone who uses investopedia as a primary source on what or how to invest. It’s magazine level content. The equivalency here is using popular science as a reference for how to engineer a bridge.