Not the usual topic here, but I have been pondering bonds lately and needed a place to post a graph to illustrate a point.

We now return to our regularly-scheduled programming.
























Sources of bond return, from here


















Simple simulation to see how much of a difference adding a volatile yet higher-underlying-return asset class makes. Assumptions: Yield of total market is 4% and SD of 6.5%, yield of new asset class is 6% SD of 8%.