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Personal Investments • Re: Bonds Looking Back

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Total bond with a duration of about 7 years has significant volatility potential... just less than total stock.

Some folks on BH (including some prolific posters) espoused the safety of a total bond fund... and lots of BH forum members were caught in the rising interest rate period holding the bag of a 20+% downturn.
Yeah this was so foreseeable. Zero interest rates what could go wrong. You were being paid nothing to hold bonds and had a huge duration risk. Made little sense to own them.
Interesting. So, given the foreseeable and inevitable decline in bond prices, would it have been market timing to rotate away from bonds or would the BH advice have been to hold firm and take the hit?
The advice would depend on the individual. If your goal and investment style says hold a bond fund then it will work out. Rates rising in the long term would give an investor more money

Statistics: Posted by Johm221122 — Wed Jun 26, 2024 10:36 am



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