Bonds Open 2023 With a Rally By Sam Goldfarb Matt Grossman | January 8, 2023 The Wall Street Journal Summary: U.S. Treasurys are off to a solid start in 2023, providing a glimmer of hope to investors recovering from a historically terrible year for bonds. Treasury yields, which fall when bond prices rise, logged sizable declines in the first week of the year. The moves were aided first by encouraging inflation readings in Europe, and then by separate U.S. economic reports on Friday that showed a smaller-than-expected increase in average hourly earnings for workers and a surprisingly soft reading on service-sector activity. Questions: What factors contributed to the poor performance of bonds last year? Why are Treasury yields so heavily analyzed? Why do they matter? Compare and contrast the perspectives of investors versus the Fed in terms of inflation, the probability of a recession, and the future direction of interest rates Do some Research: Since 1945 How has the Bond Market performed relative to the Stock Market. Anything you find interesting? Comment about what you see? Given your World View about the Economy in both the Short Term and the Long Term, if Aunt Gert gave you $10,000 to invest, how would you invest her gift (Percentage stocks vs. Bonds)? Explain your investing rationale? What Bonds/ Stocks would you invest in and why?