Quote:
Originally Posted by KC911
^^^^^ Paul....you learned a thing or two along the way....was it from lumberjacks, down at the pool hall, or from that nekkid lady  ? But that was great!
After the Fed quit buying 4.5 Trillion in bonds during the QEs, and Fed interest rates were 0 for years, I had some bond funds, but a relatively small amount. When the Fed started raising rates a bit (long overdue IMO), those bonds funds tanked. They've done OK since, I don't keep track, but now the Fed is talking about reducing it's balance sheet and interest rates WILL be higher than now.....they've been pretty clear with their game plan. That's my perspective....I moved to relatively short term, individual, investment grade corporate bonds, and will hold them to maturity instead of bond funds....I sleep better that way . Thoughts???? |
Well, traditionally, should a corporation fall into bankruptcy, bond holders are first in line when assets are sold off. When chasing interest, the higher the interest, the higher the risk. Cindy & I are pretty damned risk adverse right now. We still hold some equities, but our only bonds are I bonds, which are no longer issued by the fed.
If you're thinking individual corporate bonds, do your homework before buying.
we also have a 5 year bank CD paying a whopping 2%. We have more in cash
than we probably should. But like I said, risk adverse.
The are no lumberjacks in Oregon...we have loggers. Kind of ironic. Back in the mid 70's, I began having lunch time conversations with a log truck driver. It was he who turned me on to long term investing. When others in the coffee shop were talking gossip, Chet & I talked investing. Chet enjoyed talking with a younger guy who would listen & ask questions. Few in town realized that by small town standards, Chet was quite a financial success. Ever read "The millionaire next door"? Chet fit into that profile. May he rest in peace, this self educated investor who got me started.
Cindy got diagnosed with MS during that same time period. That prompted me to get my ass in gear. Everybody's situation is different, therefore should tune their investing to their own situation.