FYI: In the crazy investment world in which we live, bonds yielding nothing or less are bought for capital gains, while stocks, the historical engine of capital appreciation, are bought for income. Bonds with negative yields can provide positive returns—if those yields plumb ever deeper negative territory, boosting the securities’ prices, as explained here several weeks ago.
In a world with $17 trillion of bonds with subzero yields, such desperate maneuvers are needed to eke out a return. The obligations of the government of Italy yield less than 1%, even though Italy scarcely has a government. Only when compared to 10-year German Bunds with a minus 0.7% yield can it be explained. No wonder the world rushes to the U.S. bond market for top-quality fixed-income investments for yields with not only a positive sign but an integer.
Regards,
Ted
https://www.marketwatch.com/articles/want-good-safe-yields-check-out-municipal-bonds-51567185597?mod=barrons-on-marketwatch
