Until recently experts were falling all over themselves to recommend these Treasury bonds. Are they still worth it? I bonds are designed to protect your investment from inflation. Currently, I bonds are paying interest rates of 5.27%. These bonds are a good investment as long as inflation remains high, according to Papadimitriou. However, if the Fed continues to pause its interest rate hikes, it may impact the value of I bonds.
Investors looking for income-oriented bond funds can screen for the best options among Fidelity's lineup. Fixed-income investments can help grow money with less risk than stocks. Yields are currently high, making high-quality bonds held to maturity safe investments, according to Mr. Pozen. For risk-averse investors or those looking to protect principal, there are safe investment options available.
Municipal bonds are currently offering unusually high yields and an attractive risk-return profile. Now may be the time to consider investing in them. Overall, I bonds can still be a good investment choice, especially for those looking to protect their money from inflationary pressures.