Welcome to the 5% World, Where Yield Chases You

Bonds are getting beaten down again. That means they can do a better job of protecting the rest of your portfolio from getting beaten up.

Investors have resumed worrying the Federal Reserve will have to crank up interest rates higher and longer to stifle inflation, after dismissing such fears a few short weeks ago. So long-term Treasury securities have lost about 5% so far this month, and the bond market as a whole is off about 3%.