Playing It Slow

The economy's cooling, so bonds are hot. But hold your stocks--unless you see a recession

With tech stocks limping, the dow underwater for the year and most everyone's tea leaves pointing to a slower economy, you may find yourself thinking the unthinkable: Time to buy bonds. Ugh. You wouldn't be nuts. Fixed income is a great place to hide in a slowdown, especially one that spills into recession. The last time that happened was 1990, which is also the last time that both bonds and cash outperformed stocks for a calendar year.

The numbers hint that such a scenario is taking shape again. Treasury bonds this year have returned 13.9% and cash (T bills) 3.9%, both...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!