Is it time to revisit bonds?
Bonds look more attractive vs. the S&P 500 than in 20 years. Explore policy, demographics, rates and valuations.
Savita Subramanian | Victoria Roloff
October 2026
Key takeaways
- Bonds are now more attractive relative to the S&P 500 than at any point in the past 20 years.
- Policy shifts and demographic trends support the case for bonds, while equity valuations imply annualized S&P 500 returns of -3% over the next decade.
- Rate volatility is no reason to sell the S&P 500: A longer time horizon may reduce the likelihood of losses and help investors capture rebounds.
Read our full analysis for a more in-depth look at these trends.
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