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Bonds might become a thing again with the interest rates above 3%.
by UkrainianJew 4y ago
Bonds might become a thing again with the interest rates above 3%.
- stocknoob 4y agoBonds will take a hit if interest rates keep rising. (Look at how they’ve done year to date.) If you want to actually hedge your investments, use a collar. https://www.investopedia.com/articles/active-trading/011515/how-protective-collar-works.asp https://www.investopedia.com/articles/active-trading/011515/...
- UkrainianJew 4y agoExisting long-term bonds take a hit. Because if today you can get a 6% bond maturing in 2030, nobody will buy your 3% bond unless you price it down accordingly. But if you keep getting them in 1-year increments as long as you expect the rates to rise, you just keep cashing out at maturity and reinvesting at the yield rate of the day.