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When stocks and real estate are inflated and you fear a crash, isn't it better to put your money in bonds, CDs, etc?
by dont__panic 4y ago
When stocks and real estate are inflated and you fear a crash, isn't it better to put your money in bonds, CDs, etc?
- toomuchtodo 4y agoI-bonds (lots of restrictions apply) are the instrument that loses the least value in this macro. Bonds have seen a spectacular haircut over the last 18 months [1]. You’re up against duration risk. Treasuries are only federally taxed, CDs are fully taxed, so a strategy some adopt is a short term treasury ladder until Fed go forward benchmark policy crystallizes (which leads to more firm asset class pricing information), at which point you possibly rebalance or reallocate. (not investing advice) [1] https://www.marketwatch.com/story/bond-markets-facing-historic-losses-grow-anxious-of-fed-that-isnt-blinking-yet-11665104885 https://www.marketwatch.com/story/bond-markets-facing-histor...
- streblo 4y agoThere's a pretty low limit on the amount you can invest in ibonds per year. It's in no way a solution for people looking to protect assets in a bear market.
- deleted 4y ago[deleted]
- rich_sasha 4y agoI felt they are inflated since around 2014. They might even be inflated and you still don't know when they will crash. Until then by going long bonds or similar shenanigans you risk not making enough while waiting for the crash.