09-01-2018, 11:59 AM
(09-01-2018, 11:29 AM)fenders53 Wrote: Yes the bonds can be sold but if you get upside down in them due to an interest rate move you've defeated the purpose of getting a yield to beat inflation. That was my only point.
Yes that is true. Then again, only reason for me to sell the bonds would be to get some good bargains in a bear market. I don't mind losing 5, 10 or even 15% of value on the bonds if that means I can buy some quality stocks at 20% or 30% lower than now. Lots of other options there too, such as using the bonds as collateral to get a loan. Then I can let the bond run until maturity while still getting some cash to buy the dip.
You are certainly in a better spot than I am, as the rates you get with USD are significantly better than those you can get with EUR.