My 2020 YTD investments are approximately +14%. I reallocated my 60/40 portfolio to 100% treasuries in 2019 after the yield curve inverted. To understand the basis for my decision, here is the total performance of VUSUX LT treasuries:
2007 +9.8% Beginning of the last severe Bear market
2008 +24% Bear market (treasuries rises during a bear market)
2009 -12.9% End Bear Market
2019 +14.8% Yield Curve inverted
2020 YTD +14% Bear Market
I was fully aware of the 2007, 2008, 2009 numbers. Note that in 2009 was a -12.9% return because of a "flight from quality" when investors started pulling money from treasuries and back into equities. Here is a link that explains flight to quality and flight from quality:
https://www.thebalance.com/what-is-t...quality-416873
Why did treasuries did so well in 2019 when interest rates are so low? Answer: There are two components for the total return of a treasury bond fund: Price plus interest rates. Even if you get 0% on the interest rates, you can still get a high price return if there is a demand for the treasuries.
When the yield curve inverted in 2019, I understood that the yields are declining for long term treasuries. When the yields are declining, that means the prices are rising because "yield and price move in opposite direction". This is why I reallocated my entire 60/40 portfolio to 100% treasuries bonds because there was little risk of interest rates rising and there is little risk of a flight from quality...so I went "all in".
I am now slowing buying equities at depressed prices. I expect to be +30% after the market fully recover. This is how you can make money during a bear market using treasuries.