02-04-2014, 01:06 AM
(02-04-2014, 12:18 AM)Dexter Wrote: Yikes, with dropping rates wouldn't the bond funds increase in value?
You would think so. Of course, back then fund management fees were a little higher than today. Also, I'm sure than managers were churning the account positioning the portfolio as rates changed. I don't remember all the details. All I know is that after a couple years of reinvesting, I didn't come out ahead and I swore off bonds -- especially long-term bonds.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan