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My name is Bond

Started by Monoriu, July 17, 2009, 03:53:22 PM

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Monoriu

Is this a good time to buy bonds?  Yields on the bond funds that I've seen are about 4% now.  Modest, but acceptable.  The thing is inflation will kill me.  And maybe equity is a better bet now.

But I can't put all money in equities and cash.  I need some assets in Euros, and not everything in US$.  If I'm going to buy Euros, may as well put them in bonds which offer a higher return. 

I've looked at the actual bonds that the funds have.  Looks like Poland is their favourite.  A lot of people have bought bonds from the Government of...Iraq, of all places.  Denominated in US$, of course.

Thoughts?

Habsburg

My CD is presently paying .86% and Bank of Amerika was like all proud of this, like the were the cats-meow.  <_<

Admiral Yi

I've read a lot of stuff that says US corporate bonds (6ish) are one of the best deals going right now.  Don't know about Euro sovereign bonds.  I also read that Joanskie's much-touted TRIPS are yielding a pathetic 1.79.

Monoriu

Quote from: Admiral Yi on July 17, 2009, 03:56:37 PM
I also read that Joanskie's much-touted TRIPS are yielding a pathetic 1.79.

Not surprised.  You can't have it both ways.  If it is a good hedge against inflation, then something else has to give.

BTW, some bond funds are labelled "hedged", and they are classified as more risky.  I can't figure out what they've done.  Any ideas?

garbon

Quote from: Habsburg on July 17, 2009, 03:55:22 PM
My CD is presently paying .86% and Bank of Amerika was like all proud of this, like the were the cats-meow.  <_<

My CD that I forgot to cancel before it renewed itself is now at 1.04% :(
"I've never been quite sure what the point of a eunuch is, if truth be told. It seems to me they're only men with the useful bits cut off."
I drank because I wanted to drown my sorrows, but now the damned things have learned to swim.

Monoriu

Quote from: garbon on July 17, 2009, 03:59:47 PM
Quote from: Habsburg on July 17, 2009, 03:55:22 PM
My CD is presently paying .86% and Bank of Amerika was like all proud of this, like the were the cats-meow.  <_<

My CD that I forgot to cancel before it renewed itself is now at 1.04% :(

In HK, fixed deposits are paying something like 0.25%.

garbon

Quote from: Monoriu on July 17, 2009, 04:01:18 PM
In HK, fixed deposits are paying something like 0.25%.

That's what my savings is paying as well...
"I've never been quite sure what the point of a eunuch is, if truth be told. It seems to me they're only men with the useful bits cut off."
I drank because I wanted to drown my sorrows, but now the damned things have learned to swim.

Monoriu

Quote from: garbon on July 17, 2009, 04:03:03 PM
Quote from: Monoriu on July 17, 2009, 04:01:18 PM
In HK, fixed deposits are paying something like 0.25%.

That's what my savings is paying as well...

Savings is paying 0.000001%.  Forgot how many zeros, but you get the idea.

garbon

Quote from: Monoriu on July 17, 2009, 04:03:45 PM
Savings is paying 0.000001%.  Forgot how many zeros, but you get the idea.

Ingdirect is giving me 1.39% on savings! Huzzah! :weep:
"I've never been quite sure what the point of a eunuch is, if truth be told. It seems to me they're only men with the useful bits cut off."
I drank because I wanted to drown my sorrows, but now the damned things have learned to swim.

Admiral Yi

Quote from: Monoriu on July 17, 2009, 03:59:33 PM
BTW, some bond funds are labelled "hedged", and they are classified as more risky.  I can't figure out what they've done.  Any ideas?
Nope.  Aside from the obvious of investing in lower grade bonds.

Richard Hakluyt

I'm putting a fair amount of money into defensive stocks with high yields. Companies like National Grid (formerly a UK monopoly, now a private company with about 50% of it's business in the USA).

http://www.digitallook.com/companyresearch/51261/National_Grid/company_research.html

The yield is currently 6.7% and will rise (unless the share prices rise as well, but that's all good).........unless the regulated business of transmitting gas and electricity in the NE US and the UK suddenly becomes unprofitable because nobody is using power........in which case we are probably dead anyway  :D

Well, that is the theory  :huh:

Malthus

Put me down as someone with no clue as to what to put money in that will yeild a decent return.

Right now, I'm putting large amounts into making extra payments on my mortgage.
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane—Marcus Aurelius

Monoriu

#12
Quote from: Malthus on July 17, 2009, 04:48:23 PM
Put me down as someone with no clue as to what to put money in that will yeild a decent return.

Right now, I'm putting large amounts into making extra payments on my mortgage.

I have no clue either.  But I have to do something.  I can't put all money in cash forever. 

And you also have a wife who is knowledgable in these things.  My wife will either say she doesn't want to think about it or will spend it all.  It's me, because there is no one else  :(

Malthus

Quote from: Monoriu on July 17, 2009, 04:57:43 PM
Quote from: Malthus on July 17, 2009, 04:48:23 PM
Put me down as someone with no clue as to what to put money in that will yeild a decent return.

Right now, I'm putting large amounts into making extra payments on my mortgage.

I have no clue either.  But I have to do something.  I can't put all money in cash forever. 

And you also have a wife who is knowledgable in these things.  My wife will either say she doesn't want to think about it or will spend it all.  It's me, because there is no one else  :(

My wife saved us a considerable sum, by *not* putting it in anything for the last few years.  :D
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane—Marcus Aurelius

Monoriu

Quote from: Malthus on July 17, 2009, 05:02:18 PM

My wife saved us a considerable sum, by *not* putting it in anything for the last few years.  :D

The question is will this strategy continue to work?  :pullshairout: