One of these days (or is it months, or years?), bond yields are going to really take off. When they do, I can retire. But in the meantime, I am really frustrated. At times like this, the correct solution is to buy short and medium term bonds, constructing a "bond ladder," which gets you better return right now, but because the bonds are relatively short maturity (say, 2-5 years), when bond yields really do take off, you don't have the capital value of those bonds drop like stones. Worst comes to worst, you just wait for those bonds to mature, and reinvest the capital in long-term, and by then, high-yielding bonds.
But what can you do when the Treasury bond yield curve looks like this?
Both the nominal and real yield are so miserable until you get out to ten years that you might as well stay in cash.
UPDATE: Many years ago, there was a very amusing article in Car & Driver about how the lowest cost car to own was actually a Ferrari, because instead of depreciating, they appreciated. I don't know if that was actually then, or if it true today. It might be an amusing alternative investment strategy, assuming the car insurance costs didn't destroy the appreciation.
UPDATE 2: To hear this website tell the story, there is something that has appreciated 115% from purchase: "Ferrari Enzo - Gained 115% or $750,000"