Quote:
Originally Posted by ChiliConCarnage
I agree w/ the savings account. Bond funds will go down if interest rates rise. If I have 10k in 7 year treasuries paying 1.0% and the Fed raises to 1.5%. Nobodies going to buy my bonds for 10k anymore. I'll have to sell below par to make up for the half point.
The longer the maturity, the more the pain. So, typically you'd want to be hiding in short/ultra short treasuries. They pay nothing though because rates are so low. Funds have to trade to rebalance. As a person you could buy an individual bond and just hold it to maturity. Though that person wants to be potentially liquid.
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Well I ****ed that up, didn't I. Don't listen to me. Listen to CCC.
I probably ****ed that up on the test in school too.
My bad. Disregard the bond fund shit.
EDIT: Obviously I'm not doing the bond fund shit.