Why Bond Fund Returns Will Likely Disappoint

This blog post at Oblivious Investor does a good job at explaining why bond fund returns don't have much opportunity for future improvements. Low returns or negative returns are more likely. Here's an excerpt:

when a bond fund’s yield is very low, that tells us that, for the near-term future, both of the return components are likely to be very low as well — the fund is likely to be earning a low rate of interest, and the fund can’t earn much via price appreciation, because there’s so little yield to give up.

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