From Dec 7 WSJ:The Bond Buyer's Dilemma
The yields on long-term US Treasury bonds will likely fall below
inflation for years. Fortunately, some reasonable alternatives
strategies exist for investors.
A few bits and pieces from the opinion piece:
Are we in an era now when many bondholders are likely to experience
very unsatisfactory investment results? I think the answer is "yes"
for many types of bonds -- and that this will remain true for some
time to come.
Artificially low interest rates are a subtle form of debt
restructuring and represent a kind of invisible taxation. Today,
the 10-year US Treasury bond yields 2%
He then goes on to suggest a few alternatives to Treasury bonds:
(b) foreign bonds in countries that have better fiscal balances
(c) blue-chip stocks with high dividend yields (ie. AT&T)