Is 2023 a good time to get back into bonds? [Video]

Investors may be focusing on near-term headwinds, but longer-term returns are on the up, helped by rising bond prices.

Financial markets have witnessed heightened volatility over the past year as the world deals with a number of major issues including the disruption in global supply chains by the pandemic, growing natural disasters due to climate change and geopolitical conflict such as the Russia-Ukraine war.

The resulting surge in inflation has created immense uncertainty for investors around the world and pushed all major central banks to wage a war on rising prices by jacking up interest rates, even at the risk of slowing down economic growth.

The current set of circumstances has also created divergent paths for stock and bond markets.

Investors, particularly those who have previously focused only on stocks, need to pay attention to the increasing attractiveness of bonds.

Why are bonds more attractive now?

Bonds are basically an instrument to raise debt by any …