Expert: Risk-reward profile much better than stocks” - Why now is the ideal time to buy bonds

Expert: Risk-reward profile much better than stocks” - Why now is the ideal time to buy bonds

According to a report from the website amp.focus.de, buying bonds is currently generating more money than it has in years. This gives savers an alternative to stocks and fixed-term deposits. Bond yields now even exceed stock dividends. All this without having to take any actual risks. The ECB is currently collecting 4.0 percent on deposits and the current yields on government bonds such as US bonds or German federal bonds are at a historically high level.

The impact on the market, the consumer and the industry is significant. The high returns on bonds encourage investors to invest in bonds instead of investing their money in stocks or fixed-term deposits. This could lead to an increase in bond investment and increase turnover in the bond market.

Bonds offer a risk-free way to earn returns, making them more attractive to investors. An increase in demand for bonds could cause bond prices to increase, which in turn would reduce returns for new investors. Rising bond yields could also impact central banks' decisions, particularly when it comes to cutting or raising interest rates.

As an economic expert, I therefore see the current developments on the bond market as promising. Investing in bonds could be a sensible alternative to stocks and fixed-term deposits due to their improved risk-reward ratio. However, the decision for or against bonds depends on an individual analysis of the current market situation and personal investment goals.