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With bond yields hovering around the highest level seen in decades, some investing experts are saying the era of “TINA” is over.
In investing terms, TINA stands for “There is no alternative,” which is shorthand for the idea that, under certain market conditions, stocks are by far the best way to earn substantial positive returns on your investments. The idea gained traction in the years following the 2007-2009 bear market, when a period of prolonged, low interest rates dimmed investor demand for low-risk fixed income products, such as government bonds, which offered little in the way of yield.
“TINA was never an investment strategy. It was a mood,” says Eileen Olson, a certified financial planner and founder of Emerald Wealth, based in South Carolina. “For more than a decade, near-zero rates pushed people into stocks because nothing else paid.”
Things are a bit different now. Though investors continue to pile into stocks — the S&P 500 hit an all-time high on Oct. 6 — Treasury yields have risen amid elevated inflation and tighter monetary policy. On Wednesday, the yield on 1-year Treasury bill was 4.442%, and a 10-year T-note yielded 5.35%, the highest level since April 2002.
“Many investors haven’t adjusted,” Olson adds. “Because the last 15 years trained them to think stocks are the only game in town. That’s recency bias, and it’s one of the most expensive habits in investing.”
Over long periods, bonds have typically delivered lower average returns than stocks. But government bonds come with some advantages, such as lower volatility and stable, practically guaranteed income over the life of the bond if held to maturity. Now that even the lowest-risk bonds pay an interest rate that’s competitive with what investors can earn — at least in the short term — in stocks, financial pros say it’s worth re-examining whether they have a role in your portfolio.
Stocks vs. bonds: Ask yourself, ‘what is this money for?’
Considering the potential returns for an investment can help inform your asset allocation, but experts also say you should strongly consider your financial goals and time horizon. Diversification among different assets in your portfolio isn’t just a way to hedge against risk, but also a way to meet different goals, Olson says.
“Before asking ‘stocks or bonds?’, ask ‘what is this money for?’” she says. “Money you need for a home in two years, retirement income in five, and your grandchildren’s future in twenty shouldn’t all be invested the same way.”
For goals you’re looking to hit in 10 years or longer, experts generally say it makes sense to gravitate toward stocks. While the stock market can drop — sometimes precipitously — at any time, keeping your money invested for 10 years or longer typically allows you to withstand short-term downturns and take advantage of the market’s long-term upward trajectory.
The S&P 500 delivered positive returns in over 98% of 10-year periods from 1937 through 2025, according to Hartford Funds. Annual returns have averaged around 10% since 1957, per Fidelity. The average 10-year return was nearly 15% between 2016 and the end of 2025, the brokerage reports.
“For investors with less time than that, the probability of a negative return over that period is more likely each year it is shorter than 10 years,” says Joseph Boughan, a Massachusetts-based CFP and owner of Parkmount Financial Partners.
If you have an intermediate-term goal, say, one five years out, experts say to consider a Treasury note with a maturity that matches your time horizon. Treasurys are backed by the government, so they come with virtually no risk of default. That means that the more than 5% per year investors currently earn on a 5-year Treasury is all but guaranteed for the next half decade if you hold the bond to maturity. That’s a big deal if you’re looking to buy a home, for example, experts say. Investing in bonds means that you can earn some extra money on your savings without the fear that a double-digit decline in the stock market could wipe out a chunk of your down payment.
And if you’re stashing cash for a short-term goal, and need access to it soon — there’s yet another alternative to both stocks and bonds: cash. After years of paying practically nothing, high-yield savings accounts can be found with annual percentage yields north of 4.25%, according to Bankrate.
“For the first time in years, investors can be paid well to hold the money they’ll need soon [in cash or bonds],” Olson says. “They can let stocks do the long-term work without having to sell them in a downturn to pay the bills.”
Regardless of your money goals, it’s typically ill-advised to make investing decisions that could impact your long-term financial plan based on temporary conditions. Working with a financial advisor to help you navigate a change in the economic environment can help you make decisions that make sense for your personal financial situation.
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