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Bonds Are Becoming Attractive

ytytytyt
ytytytyt   |     |   156 posts since 2013

Dear Readers,

The Bonds across the board (except Junk) have moved down in last couple of weeks.

I am hoping to buy some next week. My watchlist has TIPS, MBS from last week, and I'm adding:

  1) BSCK:  Guggenheim BulletShares 2020 Corp Bond

  2) BWX:  SPDR Barclays International Treasury Bd

  3) TLO:  SPDR Barclays Capital Long Term Treasury

Yours Truly,

- Anon




ytytytyt
ytytytyt   |     |   156 posts since 2013
Dear Readers,

Bonds moved down for a while, and today they reversed a little ... TLO made a large jump today.  It looks like the stock market is ripe for a downfall, and bond market is ripe for continuation of its rally.

Yours Truly,
- Anon
In FED I Trust :-)

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lou
lou   |     |   630 posts since 2010
ytyt, why do think rates are coming down? Do you think this early stage of the economic recovery many are hoping for is going to stall out? If the economy is really recovering I would think interest rates would continue to edge up. Since you are willing to put your money where your mouth is, I am intrigued why you think the bond market is a good place for new money.
ytytytyt
ytytytyt   |     |   156 posts since 2013
.

Dear Lou,

What's new money? ... I indeed am willing to trade using the money I have, with no distinction between (so called) new or (so called) old money. I could find only a single opprtunity with the bonds that I was willing to take, which I took, not to mention posted about it as well.

http://www.depositaccounts.com/forum/thread/13528-mortgage-backed-bonds-mbs.html

... If I get more opportunities, that I feel comfirtable with then, I will take them ...
Do you think this early stage of the economic recovery many are hoping for is going to stall out?

First I must reject the premise of your question that somehow I am "hoping" for a stalling out of the economy. Definitely the alarmists here (Shorebreak who often make pessimistic posts being one such) perhaps are hoping for such a thing, but in general the Patriotic American, including yours truly, have no such negative "hopes".

You might (or perhaps might not) have heard that economy is much more than stock market and bond market.  No?  If you've heard thism then you'll know that the fall/rise in stock/bond market is rather loosely co-related to the "other" sections of ecomony viz. Job Market, Real Estate Market, Commodity Market ...  So let me relieve the intrigue you are feeling.  The flctuations of the stock/bond/currency/commodity market can be used to generate profits.  Which is what this is about.  :-)

Yours Truly,
- Anon
In FED I Trust :-)

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ytytytyt
ytytytyt   |     |   156 posts since 2013
Dear Readers,

Started buying some foreign bonds ... Bought LEMB @ 53.30 ... also BWX @ 57.56 ...

LEBM has 30 day SEC yield of 3.98%  as of yesterday, and BWX has 1.35%

Links:
  • http://us.ishares.com/product_info/fund/overview/LEMB.htm
  • https://www.spdrs.com/product/fund.seam?ticker=BWX
Yours Truly,
- Anon
In FED I Trust :-)
.
ytytytyt
ytytytyt   |     |   156 posts since 2013
Dear Readers,

After quite a while the Junk Bonds suffered a tiny decline today.

Junk Bond ETFs like JNK, HYG and PBH are too far away from the level at which I'd consider buying, but if the stock market suffers a large decline then the Junk Bonds, which have higher corelation to Stocks than to the overall Bonds perhaps will become attractive enough ...

Yours Truly,
- Anon
In FED I Trust :-)