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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

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To: fswep who wrote (343)11/30/2000 8:24:27 PM
From: booters  Read Replies (1) of 12410
 
A bond roll over program.

Use to do that as a broker. Very good idea but did not sell all of them when bonds went up. Don't understand that. The whole idea behind the program is to not "play" the market. That is why you have short bonds in the portfolio, so they will mature and be invested at the current rate. If up then raising the return. If market is dropping then the longer bonds are returning more and increasing in value. If you sell the bonds at the higher price you have to reinvest the money at a lower rate and therefore give the money back in time. This in itself defeats the purpose and most important forces you to reinvest all at the same time.

Maybe I have forgotten something, very possible.

Anyway it is a good idea and can be spread over longer time spans for different needs. Also Tax frees, alot can be done with bonds if invested and worked properly.

boots
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