Viewing a single comment thread. View all comments

Hour-Quality7083 t1_jdx9lyo wrote

Am I regarded or is buying bonds the good way to stay afloat in this situation

2

one_part_alive t1_jdxz740 wrote

Ignore the idiots replying to you. They're clearly regards who don't know shit about fuck

Although buying bonds may have some opportunity cost (i.e., if the market crashes before your bond matures, you miss out on buying stocks for a low price) they're a decent investment right now thanks to super high federal reserve rates, volatile markets, and slowly (but steadily) decreasing inflation.

And, as always, treasury bonds are essentually 100% safe and guaranteed ROI. If treasury bonds failed, your money in them would've been worthless anyway.

As with all things in any investment decisions, it's trade-off of risk vs return. If you hold cash, you risk devaluation thanks to inflation but you also have the possibility of immediate liquid funds in the event of a crash. If you buy bonds, you risk losing the opportunity to buy stocks at market-crash prices, but have guaranteed ROI if held to maturity.

But to answer your question, "to stay afloat," yes. Absolutely.

5

[deleted] t1_jdxzntz wrote

Really depends. When rates come down inevitably, they’ll fare well. In 08 Treasuries skyrocketed. But I think some growth stocks will do substantially better in that situation. Sounds regarded, but it depends on your time horizon.

2

[deleted] t1_jdxvxhn wrote

[deleted]

0

one_part_alive t1_jdxyn8l wrote

If you buy a bond before rates come down the guaranteed return doesn't change at all. As a matter of fact, for long term bonds purchased before rate cuts, the value of them increases as newer bonds yield lower and lower returns.

2

[deleted] t1_jdxzfuy wrote

I made a mistake in the prior comment cuz I was distracted - for that Regarded blunder, I apologize

1

ShepherdofSushi t1_jdxmo5m wrote

The real rate of return on those bonds is nearly negative with inflation lol cash is king for the short term

−2

liquid_offense t1_jdyx4df wrote

Market forward-looking. As long as the downtrend in inflation persists, we'll be up before 2%

1