absolutezero wrote:What are bonds going to give you that cash* doesn't?
*Cash = anything cash like - cash, bank deposit, savings accounts, Premium Bonds etc
Bonds give the potential to benefit from falling rates. However in a rising rate environment they give the opposite which is why i don't good any and if i did i would certainly not want a bond fund.
There is a reason short dated bond funds are popular at the moment, it is because they are a cash proxy. However if your platform allows it i would good cash. I hold premium bonds as a buffer. Cash gives optionality in return for inflation risk.
If you want to bet against the Fed then bonds and bond funds are the way to go. You may even be lucky.
I wouldn't ask about whether bonds have been better than cash (they have) but will cash beat bonds if the bond really era is over and we are in a rising rate and value period for the markets.