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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?


To: Investor2 who wrote (8196)7/4/2014 3:16:57 PM
From: MrGreenJeans  Read Replies (1) | Respond to of 10065
 
I am holding ee bonds at higher rates purchased years ago.

MGJ



To: Investor2 who wrote (8196)7/5/2014 8:36:48 AM
From: gronieel2  Read Replies (1) | Respond to of 10065
 
"...I can't bring myself to buy more bonds at current rates..."

It's been about five years now of extraordinarily low interest rates and many people have been in short term bonds, or even worse cash, savings and CDs, waiting for interest rates to eventually rise. Rick Ferri says they have already lost more in opportunity costs than they would have lost from rising rates.

The Risk Of Short-Term Bond Funds


July 2, 2014 By Rick Ferri

Did you miss returns from intermediate-term bond funds because you sat in a short-term bond fund waiting for interest rates to rise? A lot of people did.

This strategy has backfired as the opportunity cost of not being in intermediate-term bonds has been more costly than whatever damage rising interest rates might have taken away.

rickferri.com