Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.

Should I replace bonds in a passive investment strategy
Bonds still definitely have a place in many passive portfolios.  While it is true that interest rates have been unusually low, yields on reasonable passive bond exposures are still around 2-4%.  This is significantly better than both recent past inflation and expected inflation both of which are near zero.   This is reasonable if not great return, but Bonds continue to have other nice properties like relatively low risk and diversification of stock portfolios (the "offset[ing] losses" you mention in the OP).  So to say that bonds are "no longer a good idea" is certainly not correct.  One could say bonds may no longer be a good idea for some people that have a particularly high risk tolerance and very high return requirements. However, to some extent, that has always been true. It is worth remembering also that there is some compelling evidence that global growth is starting to broadly slow down and many people believe that future stock returns and, in general, returns on all investments will be lower.  This is much much harder to estimate than bond returns though.  Depending on who you believe, bond returns may actually look relatively better than the have in the past. Edit in response to comment:  Corporate bond correlation with stocks is positive but generally not very strong (except for high-yield junk bonds) so while they don't offset stock volatility (negative correlation) they do help diversify a stock portfolio.  Government bonds have essentially zero correlation so they don't really offset volatility as much as just not add any.  Negative correlation assets are generally called insurance and you tend to have to pay for them.  So there is no free lunch here.  Assets that reduce risk cost money, assets that add little risk give less return and assets that are more risky tend to give more return in the long run but you can feel the pain.  The mix that is right for you depends on a lot of things, but for many people that mix involves some corporate and government bonds.