Yields comparison for bonds, REITs, and defensive assets adjusted for inflation.
Conservative investing focuses on capital preservation and generating steady income streams with minimal risk. Unlike growth strategies that chase high returns, conservative strategies prioritize safety and real purchasing power.
Key Concept: Inflation erodes purchasing power. A 5% nominal return with 4% inflation is only a 1% real return. We focus on Real Yield.
* For Bonds, Yield = Current Market Rate.
* For REITs/Stocks, Yield = Dividend Yield.
Government bonds backed by the US Treasury. Considered the "Risk-Free Rate" baseline. We track 10Y (^TNX) and 5Y (^FVX) yields.
Bonds indexed to inflation (CPI). Their principal increases with inflation.
Ticker: TIP (iShares TIPS Bond ETF).
Companies that own or finance income-producing real estate.
They are required to distribute 90% of taxable income as dividends.
We track global leaders: PLD (US Logistics), LAND.L (UK Commercial), 0823.HK (Asia Retail).
Debt securities issued by corporations with strong credit ratings. Offer higher yields than government bonds with moderate risk.
Ticker: LQD (iShares Investment Grade Corporate Bond ETF).
A traditional safe-haven asset and hedge against inflation. While it does not yield dividends, its price often rises during periods of high inflation or market uncertainty.
Ticker: GC=F (Gold Futures).
Companies with a history of increasing dividends for 25+ years.
Often used as "Bond Proxies" due to stable yields.
Examples: O (Realty Income), JNJ (Johnson & Johnson).