S9E15 Are Bonds Still Worth Owning? With Doug Longo of Dimensional Fund Advisors
After a challenging period for bonds, some investors are questioning whether they still deserve a place in a diversified portfolio. But have the fundamental reasons for owning bonds really changed?
In this episode of The Money & Meaning Show, Jeff Bernier welcomes Doug Longo, Vice President at Dimensional Fund Advisors, for a conversation about the role of fixed income in investment portfolios, particularly for those approaching or already in retirement.
Drawing on his experience as a Marine and as a fixed income trader during the 2008 financial crisis, Doug discusses how bonds can serve different purposes, from managing portfolio volatility and providing liquidity to addressing inflation risk.
Jeff and Doug also explore the debate surrounding the traditional 60/40 portfolio, the importance of understanding the risks investors are being compensated to take, and why Dimensional uses a systematic, research-based approach rather than trying to predict where interest rates will go next.
Recording Note: This episode was recorded on October 6, 2026. Market conditions, interest rates, yields, and performance figures discussed reflect information available at the time of recording and may have changed since then.
Topics covered:
- How Doug’s experience in the Marine Corps and during the 2008 financial crisis shaped his perspective on discipline and investing
- The different roles bonds can play in a diversified portfolio
- Whether the traditional 60/40 portfolio still makes sense
- What higher bond yields may mean for investors
- Understanding when taking additional interest rate or credit risk may be worthwhile
- How global bond diversification and currency hedging work
- The role of Treasury Inflation-Protected Securities (TIPS) in addressing unexpected inflation
- Why predicting future interest rates is so difficult
- How Dimensional’s systematic approach to fixed income differs from traditional active and passive management
- Why aligning investments with financial goals and maintaining discipline remain important
Episode Timestamps:
01:55 | Doug’s journey from the Marine Corps to Wall Street
05:30 | Experiencing the 2008 financial crisis
09:48 | Lessons in discipline from military service
13:24 | The different roles bonds can play in a portfolio
17:02 | Is the traditional 60/40 portfolio still relevant?
19:50 | What higher bond yields may mean for investors
21:19 | Understanding term, credit, and currency premiums
24:44 | Why invest in international bonds?
27:54 | TIPS and protection against unexpected inflation
31:48 | Interest rate risk and the yield curve
33:06 | Understanding credit spreads
35:07 | AI infrastructure financing and corporate bonds
38:08 | Bond returns and the limits of interest rate forecasting
41:38 | Dimensional’s systematic approach to bond investing
45:48 | Building a portfolio around financial goals
At TandemGrowth Financial Advisors, we believe investment decisions should be grounded in research, diversification, and a disciplined approach that reflects each client’s financial goals. To learn more about how we put these principles into practice, explore our Investment Philosophy and Investment Management services.
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TandemGrowth Financial Advisors (“TandemGrowth”), a registered investment adviser, is providing this podcast which is intended for general educational purposes and is not personalized investment advice.
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)
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Editing and post-production work for this episode was provided by The Podcast Consultant.
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