3 ms·
i-Bonds are limited at 10K, and bond funds seem risky if rates will go up ? Or are there specific bond funds for this unique time?
by mancerayder 4y ago
i-Bonds are limited at 10K, and bond funds seem risky if rates will go up ?
Or are there specific bond funds for this unique time?
- nemo44x 4y agoNo I’m saying you want to go in debt!
- mancerayder 4y agoBut housing could well crash, so mortgages are out. What type of loans are we supposed to be getting?
- nemo44x 4y agoHome equity loans, etc.
- mancerayder 4y agoA home equity loan with a risk of a housing crash?
- nemo44x 4y agoHyper inflation more likely. Get a loan while money is cheap. Housing will come back no matter what anyways. But honestly could be 3x their cost today in 10 years. No one is selling anyways.
- cudgy 4y agoWages are moving down in real terms. Many home purchases are made with 40% of gross income presently. Increased (3x) home costs would mean buyers would be paying out an even higher percentage of gross income. Eventually too many buyers are unable to buy housing and the party is over. I think we are already there, so 3x housing prices (and 3x rental prices) in 10 years seems very unlikely.
- nemo44x 4y agoThe printer will go burr and wages will increase because a load of bread is $10. Most of todays debt will be wiped out.
- cudgy 4y agoThe burr of the printer will only make the spread between wages and costs even worse. Only fixed rate debt will be eroded by inflation; variable rate and short-term debt will step up to higher rates.
- tqi 4y agoHm can you explain more? Go into debt and do what with the money?
- staticman2 4y agoThe financial markets are predicting 2.15% inflation over the next 10 years: https://fred.stlouisfed.org/series/T10YIE https://fred.stlouisfed.org/series/T10YIE Good muck to anyone placing their trust in internet forum hot takes.
- cudgy 4y agoBond funds are generally a poor way to invest in bonds, especially in a rising interest rate environment.