Is anyone investing in Australian Bonds supposedly running at 8.5%, page-7

  1. 3,447 Posts.
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    that is true but Property trusts ( REITs ) are highly correlated with equity indices, whereas government bonds have a negative correlation. So when there is a market crash, people flee to government bonds, not REITs.
    So bonds provide diversification benefits against stock market volatility which REITs don't.
 
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