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byeya

(2,842 posts)

9. If you're in bonds you need to cut the duration risk. Any uptick will eat into the bond's value

Reply to lumberjack_jeff (Reply #6)

Mon May 6, 2013, 01:10 PM

May 2013

unless you own the bond outright and don't intend to sell it. Then you'll have to be satisfied with the coupon.

Rates have to go up some time but the world's bankers are more worried about deflation than inflation. They will err by keeping the easy money policy for too long then those in mutual funds and ETFs will get hurt. Closed end funds, not as much.

You can buy reputable socially-not-to-bad companies with yields higher than most investment grade bonds. I think that's Buffet's message.

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Warren Buffett: Buy stocks, beware bonds [View all] cbdo2007 May 2013 OP

Translation: the game of musical chairs is coming to an end. dixiegrrrrl May 2013 #1

Translation: the 30-year-long Bull market in bonds is coming to an end. Common Sense Party May 2013 #27

Yes, but when? Junk bonds were up 15+% last year and BBBs were up 12% byeya May 2013 #28

Good question. No one really knows when inflation will rear its ugly head. Common Sense Party May 2013 #29

I agree 100% with that: Now is not the time to buy bonds. byeya May 2013 #32

So are you just going to avoid answering my question? A HERETIC I AM May 2013 #30

It's not just that Yo_Mama May 2013 #31

He also might be worried about interest rates going up Yupster May 2013 #2

For years a nice place to be is in closed end municipals levered up once or twice. byeya May 2013 #3

I'll just lay this here: dixiegrrrrl May 2013 #4

There's eurojunk and there's USAjunk. Right now the average junk corporate bond is selling byeya May 2013 #5

I'm curious where you got this information; A HERETIC I AM May 2013 #16

It just means that you only get $100 if and when the bond matures. reformist2 May 2013 #17

Actually, no. A HERETIC I AM May 2013 #18

What do you want to know? You're not being very clear. reformist2 May 2013 #21

First of all Reformist, I'm asking "Byeya", not you. A HERETIC I AM May 2013 #24

Well, then, instead of asking, you should have just explained it. reformist2 May 2013 #25

I'm curious where he got the information. A HERETIC I AM May 2013 #26

We've been hearing this advice for several years. lumberjack_jeff May 2013 #6

If you're in bonds you need to cut the duration risk. Any uptick will eat into the bond's value byeya May 2013 #9

If you bought stocks a few years ago based on that advice Johonny May 2013 #20

I thought it was a foregone conclusion that stocks were a scam Blue_Tires May 2013 #7

IMO, a scam in the sense the system is rigged against the retail investor. That doesn't mean a byeya May 2013 #10

I haven't seen any evidence that stocks are a scam cbdo2007 May 2013 #14

One thing I remember to remember is that after the Crash in '29 it took nearly 30 years byeya May 2013 #19

You've never read about anyone manipulating stock prices Blue_Tires May 2013 #22

It is also a practice for a firm that invests for other people to use those privately owned stocks byeya May 2013 #23

Corporate earnings are at 100-year highs, thanks to global free trade. reformist2 May 2013 #8

I think earnings are also at record highs due to the Feds inflating assets like stocks and suppressi byeya May 2013 #11

good point. reformist2 May 2013 #13

I'd rather be wrong with his bank account than right with yours. cbdo2007 May 2013 #12

good point! reformist2 May 2013 #15