Hi Everyone, I have been following the stock market for some time but know very little about bonds. Here are some of my uneducated questions: If bonds were tanking during rate increases, would it stand to reason that they will go up during rate cuts or pauses? Is there more room for bonds to go down if the fed hikes one more time and holds all year? What do you think the outlook is for bonds over the next few years? Good time to buy? $Bond Fund(LIST0805.SH)$$Tesla(TSLA.US)$$Bond ETF(LIST2730.US)$
Just because a business's stock price goes up and down more than the market, or another company, doesn't mean it's riskier. Buffett says people who believe this may increase risk by doing stupid things. What stupid things? Holding assets that don't increase purchasing power. These would include: • Cash • Bonds • Treasuries Make sure your assets will meaningfully increase purchasing power over long periods. Let's elaborate more on that. Stocks are much more vo...
whqqq :
Volatility does not represent risk. Every stock will fluctuate. If we decide to hold it for a long time, we should be prepared to accept volatility.
Warren Buffett’s #1 money tip for retirees is a method that allocates 90% of investment capital into stock-based index funds while the remaining 10% of money is put into lower-risk investments. Buffett’s favorite exchange traded index fund is one that tracks the S&P 500 like the SPDR SPY ETF or Vanguard’s VOO. He has seen that the S&P 500 beats the majority of all mutual fund managers and that the ETFs also save investors a lot of money with much...
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whqqq :
The S&P 500 index is a very diversified by sector for a smoother equity curve.
Mike Hunt :
Sorry, but in times of 9% inflation and a bear market that doesn’t work. You have to earn 9% return after taxes just to stay even. SQQQ is only thing that might do that. You can’t always be long. That works OK in a bull market with low inflation. To be a good investor you have to be flexible and be able to earn a good return regardless of which direction the market goes.
$Bond ETF(LIST2730.US)$If you haven't noticed, the fed does not view elevated inflation as a bug. Inflation is beneficial to debt holders. Like the US Treasury. 28T in 2025 will be a lot less than 28T in 2019. A lot less. The downside of inflation is seen by fixed income investors and the average Jane. Part of the reason for high demand in housing and real estate comes from people parking their money in inflation proof assets. My guess is the Fed wants lasting higher inflation within a set range. So I am expecting higher inflation for the next 3-8 years, or until their is a different regime in Washington
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carririlin :
Eurozone finance ministers agree with the European Central Bank’s view that the current inflation problem is temporary and will fall back next year
$Bond ETF(LIST2730.US)$ECB policymakers discussed in September to cut the scale of debt purchases more drastically, increasing concerns about inflation According to the minutes of the European Central Bank’s September 9th meeting, policy makers debated last month about reducing the size of asset purchases more drastically, and their concerns about inflation are also greater than suggested by post-meeting communication. The European Central Bank’s decision last month to “moderately” cut bond purchases is the first time the bank has taken measures to end the stimulus related to the epidemic, albeit only symbolically. However, some policymakers have put forward reasons for cutting debt purchases more drastically, believing that the central bank’s response measures are out of step with the economic recovery. Article excerpted from Reuters Financial Morning Post
$Bond ETF(LIST2730.US)$$Treasury Yield 30 Years(.TYX.US)$JPMorgan Chase’s chief executive Dimon told Reuters that he had begun to prepare for the possibility of the United States hitting the debt ceiling, but he expected policymakers to find a solution to avoid this “potentially catastrophic” event. Dimon said in an interview that the largest bank in the United States has already begun to make scenario planning on how a possible US credit default will affect repurchase and currency markets, customer contracts, its capital adequacy ratio, and how rating agencies will react. Article excerpted from Reuters Financial Morning Post
I have been following the stock market for some time but know very little about bonds.
Here are some of my uneducated questions:
If bonds were tanking during rate increases, would it stand to reason that they will go up during rate cuts or pauses?
Is there more room for bonds to go down if the fed hikes one more time and holds all year?
What do you think the outlook is for bonds over the next few years? Good time to buy?
$Bond Fund(LIST0805.SH)$ $Tesla(TSLA.US)$ $Bond ETF(LIST2730.US)$
Buffett says people who believe this may increase risk by doing stupid things.
What stupid things? Holding assets that don't increase purchasing power.
These would include:
• Cash
• Bonds
• Treasuries
Make sure your assets will meaningfully increase purchasing power over long periods.
Let's elaborate more on that.
Stocks are much more vo...
nothing about the future."
$Berkshire Hathaway 13F(LIST2999.US)$ $Berkshire Hathaway-A(BRK.A.US)$ $Berkshire Hathaway-B(BRK.B.US)$ $Bond ETF(LIST2730.US)$ $Bond Fund(LIST0805.SH)$ $Citigroup(C.US)$ $Bank of America(BAC.US)$
Buffett’s favorite exchange traded index fund is one that tracks the S&P 500 like the SPDR SPY ETF or Vanguard’s VOO. He has seen that the S&P 500 beats the majority of all mutual fund managers and that the ETFs also save investors a lot of money with much...
Inflation is beneficial to debt holders. Like the US Treasury. 28T in 2025 will be a lot less than 28T in 2019. A lot less.
The downside of inflation is seen by fixed income investors and the average Jane.
Part of the reason for high demand in housing and real estate comes from people parking their money in inflation proof assets.
My guess is the Fed wants lasting higher inflation within a set range. So I am expecting higher inflation for the next 3-8 years, or until their is a different regime in Washington
According to the minutes of the European Central Bank’s September 9th meeting, policy makers debated last month about reducing the size of asset purchases more drastically, and their concerns about inflation are also greater than suggested by post-meeting communication. The European Central Bank’s decision last month to “moderately” cut bond purchases is the first time the bank has taken measures to end the stimulus related to the epidemic, albeit only symbolically. However, some policymakers have put forward reasons for cutting debt purchases more drastically, believing that the central bank’s response measures are out of step with the economic recovery.
Article excerpted from Reuters Financial Morning Post
Article excerpted from Reuters Financial Morning Post
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