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.

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

To: stock bull who wrote (57)	8/16/1998 6:00:00 PM
From: Ken Brown	Read Replies (1) \| Respond to of 15132

I'm not sure that I understand why you are saying..."I sold them after the yields went so low and I felt they simply weren't worth holding." Stock Bull, I wrote that, not Mr. GJ (who still holds his 9%+ bonds). My point was this: If you bought $10,000 worth of 30 yr bonds at 9%, and 4 yrs later the current rate is 5.6%, one way to view your current holdings is at their current value & yield. I have no idea what that would be in the example I just gave, but let's say it's $18,000. So, I prefer to view such a holding as $18k at 5.6%, because, in fact, that is their current value. At the time I sold, I thought 7% was going to be the lower end of the range for the long bond. Indeed it was, for a time. But, looking back, it's obvious there were substantial additional capital gains remaining. In fact, even if rates had remained steady, 7% - in retrospect - doesn't sound that bad! Ken