Rates go up, bonds go down.

You mean...like stocks?

Not the same.

This is more of a fundamental type of change. Stocks still depend.. on the company (hard to believe i know)




New bonds with higher interest rates will start coming into the market which means old bonds at the previous rates become less value so the principal value goes down.




If interest rates keep going up.. I would not buy the bond yet... once i think it stabilizes or you feel it'll start dropping again.. probably would be the best time to buy

On the other hand... CD's Money markets are paying decent on interest rates right now, might be a better short term option.

3 month cd on fidelity ~ 2% ish

$SPAXX 1% 7 day yield

This post was edited by Linux on Jul 5 2022 03:17pm

Bonds and stocks are not the same, true. Interest rate increases are bad for both bonds and stocks, also true. And when the stock market goes down 20% people say it's a good buying opportunity, but if bonds go down by the same proportion it is rarely stated. Why is that? It's because 1) the modern investor does not consider bonds, and 2) stocks outperform bonds in the long term, leading to 1). If you're making short term plays though, bonds are looking attractive

Recessions are good for bonds, for a multitude of factors but primarily inflation getting curbed. Bond prices have crashed more than stocks have, you can pick them up right now at very high yields, and stocks are getting killed in the meantime

e/ in response to your edit, I was thinking more long term treasuries, like US 30 yr. Yields are higher, just got to be careful with the increased sensitivity

This post was edited by dro94 on Jul 5 2022 03:45pm

I think bonds are a good play after the next two rate hikes. Buy some at deep par discounts or at high yields and sell once rates start to drop and collect that premium + interest income over that time.

Pretty sad when 4 Green Days in a row is the year record lol

Did u end up pulling trigger on zoom ?

Yes. Down like 20% on them but I think they're undervalued and their balance sheet is strong, so I'll hold for a few years at least

Wow. Musk officially backed out of Twitter deal and $tsla goes up