Diamond Hill analyst Henry Song says bond-market uncertainty warrants allocating to short-term assets with attractive yields. He expects today's Fed decision will do little to alter war-driven inflation, leaving the rate outlook unclear, and calls Treasury Secretary BESSENT's efforts to control long yields futile because the market "has seen through his bluff." Song's strategy is to buy "large amounts of high-current-yield short-term assets" and stay flexible to redeploy proceeds at maturity if

Diamond Hill analyst Henry Song says bond-market uncertainty warrants allocating to short-term assets with attractive yields. He expects today's Fed decision will do little to alter war-driven inflation, leaving the rate outlook unclear, and calls Treasury Secretary BESSENT's efforts to control long yields futile because the market "has seen through his bluff." Song's strategy is to buy "large amounts of high-current-yield short-term assets" and stay flexible to redeploy proceeds at maturity if rates rise, saying "it's like a dance: maintain portfolio yield while preserving optionality."