Lesson 8 of 8
Bonds & Crypto Exposure
Fixed income and digital assets in a portfolio context
10yr Treasury
4.34%
April 2026
Fed funds rate
3.50-3.75%
held steady
Bitcoin
~$74,300
April 2026
Bonds / Fixed Income
Lend money to government or companies
Get interest payments + principal back
Lower risk, lower return
AGG, BND, TLT are popular ETFs
Crypto Exposure
Bitcoin ETFs now available (IBIT, FBTC)
Extremely volatile (50%+ drawdowns common)
Small allocation only: 1-5% max
Not correlated with stocks (sometimes)
Bonds are the shock absorber. When stocks crash, high-quality bonds usually hold steady or go up. In 2008, long-term Treasuries gained 20%+ while the S&P 500 lost 37%.
TLT (20+ year Treasury bonds). Notice how bonds often move opposite to stocks.
the role of bonds
Bonds aren't exciting. That's the point. They're there so you don't panic-sell your stocks in a crash. A 60/40 portfolio survived every crash in history.
Check yourself
What happens to bond prices when interest rates rise?