Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (16686)	3/8/2002 9:29:33 PM
From: patron_anejo_por_favor	Respond to of 74559

Good strategy on the bonds...sounds like you "bought right". Have a great weekend!

To: TobagoJack who wrote (16686)	3/8/2002 11:15:18 PM
From: rolatzi	Read Replies (1) \| Respond to of 74559

Jay, If I can give a bit of advice on the bonds, since they are laddered and since short term interest rates are so low presently, it is to your advantage to sell them when there is one year maturity left. At one year maturity, the price will have adjusted to account for the low interest rate on newly issued one year notes and you will reap the difference as a capital gain over par. Take the proceeds and roll up into the next maturity. It pays to let the bonds mature if the yield curve is flat or inverted but when it is very steep you can take your money off the table at one year or longer depending on the steepness of the curve. JMHO, Ro