1 Answers: Are bonds a good investment when interest rates are expected to go up? I.e., does the market typically already price in interest rate risk?

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Are bonds a good investment when interest rates are expected to go up? I.e., does the market typically already price in interest rate risk?

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Anonymous 7 months 1 Answer 63 views 0

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    It depends. All things can be good or bad investments depending on current market conditions. For example someone was asking about stocks and saying how they have lost all kinds of money on stocks.

    But the only way you lose money in stocks, bonds, or any investment, is by buying high and selling low.

    You never lose money when you buy low and sell high.

    So if you can find a suitable bond with a low default rate and you can buy in for one price and then with the % from the bond pull out the other end at a high price. Then it is certainly very good.

    I know people who exclusively buy bonds and never touch stocks. And vice versa. But I can tell you that bonds are usually more stable and the people doing this all day are making very good return on investment with bonds.

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