5 ms·
This is not a guarantee at all; if inflation is sufficiently high then you could be actively losing money holding a bond that fewer and fewer people want.
by mc10 6y ago
This is not a guarantee at all; if inflation is sufficiently high then you could be actively losing money holding a bond that fewer and fewer people want.
- 01100011 6y agoTrue but losing 5% on a bond investment might be better than losing 10% in a savings account or 50% in the market. You have to think about your timelines and risk tolerance.
- ISL 6y agoA $1000 T-Bill will yield $1000 at maturity, every time.
- pascalxus 6y agothat may be so but most people can't have a 30 year commitment so they buy ETFs. And ETFs need a buyer for that bond to have value. if those buyers don't exist then the bond could be worth a lot less than 1000$. this is what the author was talking about with the comparison to run on the banks for bonds.
- ISL 6y agoIndividuals can transact directly with the federal government on shorter-duration T-Bills (4-52 weeks) through Treasury Direct.