@ThisDino
+1 to all of that.
Warren Buffett: At these rates, bonds are giving you “return-free risk.”
Do you have bonds in your portfolio?
-
Mister Imperceptible
- Posts: 1669
- Joined: Fri Nov 10, 2017 4:18 pm
-
Kriegsspiel
- Posts: 952
- Joined: Fri Aug 03, 2012 9:05 pm
Re: Do you have bonds in your portfolio?
Right, I get what you guys are saying. I was showing a situation where ThisDinosaur's equation (Treasury Bond Principal + Interest is always > or = to Cash) was false.
*** I was using the Permanent Portfolio "cash" definition, which includes Treasury bills. I forgot that some people think of cash as just physical money. Obviously if interest rates rise, even paper cash could falsify ThisDinosar's equation for a time.
*** I was using the Permanent Portfolio "cash" definition, which includes Treasury bills. I forgot that some people think of cash as just physical money. Obviously if interest rates rise, even paper cash could falsify ThisDinosar's equation for a time.
-
Mister Imperceptible
- Posts: 1669
- Joined: Fri Nov 10, 2017 4:18 pm
Re: Do you have bonds in your portfolio?
I know you did, the graph you posted said it all, but if someone clicked on your link they might have been misled by the author.
I know you’re smart. I was just pointing out that the author wasn’t being 100% intellectually honest.
I know you’re smart. I was just pointing out that the author wasn’t being 100% intellectually honest.
-
OrganicRain
- Posts: 32
- Joined: Sun Oct 19, 2014 6:20 pm
Re: Do you have bonds in your portfolio?
No one can predict where interest rates will go with 100% certainty. Thats while I am sticking with a long term approach of stocks and bond indexes- and sticking to my allocation by rebalancing annually. If the bond etf drops in price, it also means yields are going up, by rebalancing, I am buying on sale.