Government Bonds vs Stocks
Rédaction Financial World News · Explication pédagogique · Comment nous sourçons les rendements
Contractual income versus residual equity. Different roles: ballast versus growth.
Le briefing complet de ce guide est en anglais. Le titre, le résumé et la navigation sont dans votre langue pour que vous puissiez décider de poursuivre la lecture.
Government Bonds vs Stocks — the mechanics
Stocks can compound in real terms for decades. Government bonds can stabilise a portfolio and fund a known liability. Using one as if it were the other is how people get surprised.
Contract versus residual. Known coupons versus unknown dividends and buybacks. Lower expected long-run return for government bonds, lower path volatility in most (not all) regimes.
60/40 portfolios use the bond sleeve to dampen equity. Inflation shocks can break that dampener. 2022 is the teaching year.
Replacing all equities with 30-year bonds because you are ‘scared’ just concentrates duration. Fear is not a duration budget.
Official sources (International guides)
Primary statistics and prospectuses for International guides are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Points essentiels
- Contract versus residual.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
FAQ
- What is a 60/40 portfolio?
- A traditional mix of equities and bonds. The bond sleeve is often government and high-grade credit. 2022 showed both can fall together when inflation shocks duration.