Quote:
Originally Posted by 1967 R50/2
Good point, but let's be clear, there is obviously more than one way to invest in bonds. You could invest in a bond FUND, which will allow you in and out with no need to hold until maturity.
Any thoughts on a corporate bond FUND?
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I don't trust most fund managers -- too much incompetence and corruption across Wall Street.
The idea that you will be able to "trade out of" a bond fund and avoid the negative effects from inflation is based on the idea that you will be able to see the inflation and react -- trading out of your position --
before other investors behave similarly.
Is that really possible?
With the literally
trillions of new dollars being created, we all know that price inflation will be the end result.
In my opinion, it is better to start buying "stuff" -- even if one is early in such areas and experiences further devaluation of that "stuff" while the economy slows -- rather than risk getting caught in the inflation trap that is sure to come.
What worked best in the 1970s and 1980s? We are in for even worse inflation than seen then.
Heck, I'd suggest buying tons of copper @ $1.40/lb and piling it in the back yard before I'd suggest lending money to corporations at "low" interest rates.
You want "stuff,"
not "IOUs" payable in devaluing paper money.