from Sovereign Man
lass=”” >Over the last several centuries, government bond yields around the world typically stayed in a range between 5% and 15%.
That’s the real long-term average… the range that you could consider ‘normal’ for government bonds.
Yet today’s government bond yields are near zero. And in many respects, less than zero.
This essentially means that investors who buy these government bonds are absolutely guaranteed to lose money if they hold to maturity.
This is absolutely insane. If you’re guaranteed to lose money, a bond is no longer a safe haven. It’s not even an investment anymore. It’s just pure insanity.
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