While Treasury securities are widely regarded as a cornerstone of conservative investing, placing one’s entire nest egg into a 30-year Treasury bond requires a careful evaluation of the various risks involved. The perception of safety associated with government-backed debt does not eliminate the potential for loss, particularly over long durations.
Understanding Risk in 30-Year Treasury Bonds
Isn’t the government literally printing money to pay us back? What risk are they actually worried about here?
I never realized duration risk was so significant for these bonds. Great eye-opening article on the hidden dangers.