harley
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Low yield has no effect on retired people. They no longer need to purchase additional bond. If yield drops then bond price appreciates and retiree can use capital gain to offset the yield drop.
However bond is a bad choice right now for people who are still in accumulation stage. I have only 1% bond in my portfolio.
I'm retired, and I disagree with this statement. If you are doing AA with rebalancing, you will be forced to sell equities in order to buy bonds when the AA percentage changes. So if I were to buy a bond fund now up to, say, 50% of my net worth, and the value dropped when the yield goes up (which will happen eventually), I would then need to buy more bond fund to get my percentage back in order. And how much do you think yields can drop from where they are now? I don't see much room for the price to appreciate.