02-26-2021, 09:51 AM
Mike,
Let me know when you try it and I will at least track the trade with you.
VBIN
Regarding the bonds, nothing I said was profound. Just basics you have to understand. There are other things that move bond prices and yields. Supply and demand like always. Remember in March when the market was afraid of corporate bonds from all but the highest rated companies. FED had to step in and buy "junk" bonds until stimulus was dispersed. A scared bond market makes wild moves.
There was a time when anyone near or at retirement age was advised to be 50% or more in bonds. Committing to a 2% yield and risking loss of capital makes that an iffy plan for me and many others now. You should put a few bond funds on your watch list with varying maturity and see how they move through the cycles. TLT, 20-30 longterm corporates etc. Things change and 5-10 years it might have a place in our portfolios. If you bought long bonds in 2019 you were up 20-25% on your capital in a year. When rates are more likely to fall than rise it often works out.
Let me know when you try it and I will at least track the trade with you.
VBIN
Regarding the bonds, nothing I said was profound. Just basics you have to understand. There are other things that move bond prices and yields. Supply and demand like always. Remember in March when the market was afraid of corporate bonds from all but the highest rated companies. FED had to step in and buy "junk" bonds until stimulus was dispersed. A scared bond market makes wild moves.
There was a time when anyone near or at retirement age was advised to be 50% or more in bonds. Committing to a 2% yield and risking loss of capital makes that an iffy plan for me and many others now. You should put a few bond funds on your watch list with varying maturity and see how they move through the cycles. TLT, 20-30 longterm corporates etc. Things change and 5-10 years it might have a place in our portfolios. If you bought long bonds in 2019 you were up 20-25% on your capital in a year. When rates are more likely to fall than rise it often works out.