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i would love to start a group for people who would like to discuss preferably daily… stocks,bonds,commodities,currencies and stam economics in general. would anyone be interested? definitly gain in this for all as far as i see…
You should start a blog or a Facebook group about it. Personally, I moved a lot of my portfolio from stocks to bonds, because I think the economy is inflated and interest rates will sky rocket while stocks take a huge downturn. I don’t think the stock market will rally for much longer.
How do bonds work? I thought that when interest rates go up you lose money on previously purchased bonds. Is that wrong?
Veltz: You are correct. Interest is the cost of borrowing or lending money. When you buy a bond, you are lending the issuing corporation/government/entity cash, and they pay you interest. So, if you invested in a 10-year, 1,000 bond with a 3% yield, or roughly $30/year interest, but then interest rates go up to 5%, your previously-purchased bonds go down in value, because now you could make $50/year in interest. Stocks are the best hedge against inflation, because when growing, they are better than bonds.
iHear: Put some money in bonds, but leave some money in the stock market, especially if you put it into some Vangaurd mutual funds.
Moving to bonds is the wrong move for your prediction.
Making a prediction about where the market is headed and where interest rates are headed is also a wrong move.
You should get a financial advisor to guide you or to direct your investments.
I don’t have time to “bond” with my money, it leaves before I have a chance….I have a few “commodities” in my frig – no wait – those are condiments…Okay, I don’t belong here, I’m going, I’m going!
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