Bonds Now Make Up Just 8% of the Average Portfolio. What Replaced Them

The article reports a material shift away from bonds in U.S. portfolios, with bonds now averaging just 8% of holdings as investors seek income and diversification elsewhere. Citing Charles Schwab survey data and market indicators (10-year Treasury at 4.35%, a VIX spike earlier in 2026), pre-retirees are reallocating into dividend growers, REITs and covered-call strategies to replace bond income. Examples include Johnson & Johnson, Procter & Gamble and Realty Income as representative dividend and REIT plays. The shift implies changing risk profiles for retail portfolios and potential greater sensitivity of household wealth to equity and real-estate volatility rather than interest-rate moves tied to traditional bond sleeves, which could influence positioning in the US SP 500 and related equity markets.