Is now a good time to buy bonds?

JohnWinder

dllive said:

What are some rules of investing in bonds? For example, when interest rates go up bond yields go down? When equities go down bonds go up?

I know theres no firm answers anyone can give, obviously, but Id like to get an understanding of whether now is a good time to buy bonds; or drip feed regular amounts into bonds, or wait to see how the next 6 months pan ouy

Sorry I neglected to suggest this when you opened the thread:

https://www.bogleheads.org/wiki/Outline_of_asset_classes#Bonds

Foreverfinance

A simple rule of thumb for those of you who are unsure about how much to invest in bonds
- Transfer your age into percentage form and invest that much in bonds (on a scale of 100)
Examples:
20 year olds- 20% in bonds
50 year olds- 50% in bonds
It's a simple rule but one that suits a general tolerance to risk in proportion to one's age. 

Alexland

Foreverfinance said:

A simple rule of thumb for those of you who are unsure about how much to invest in bonds
- Transfer your age into percentage form and invest that much in bonds (on a scale of 100)
Examples:
20 year olds- 20% in bonds
50 year olds- 50% in bonds
It's a simple rule but one that suits a general tolerance to risk in proportion to one's age.

If your thumbs are telling you bad rules then start asking your fingers.

Maybe decades ago when bonds were more attractive and people bought annuities that rule was ok.

csgohan4

Alexland said:

Foreverfinance said:

A simple rule of thumb for those of you who are unsure about how much to invest in bonds
- Transfer your age into percentage form and invest that much in bonds (on a scale of 100)
Examples:
20 year olds- 20% in bonds
50 year olds- 50% in bonds
It's a simple rule but one that suits a general tolerance to risk in proportion to one's age.

If your thumbs are telling you bad rules then start asking your fingers.

Maybe decades ago when bonds were more attractive and people bought annuities that rule was ok.

I'm 100% equities and I'm in 30's. Bond yields are poor currently, and I am not touching corp glits with a barge pole. I may dial down my equities as I approach retirement, but not into bonds directly, but into income and Wealth preservation trusts. 

Thrugelmir

dllive said:

What are some rules of investing in bonds? For example, when interest rates go up bond yields go down? When equities go down bonds go up?

The yield that investors demand will rise when interest rates rise. The old correlations between equities and bonds are broken following the more recent fiscal monetary policies of Central Banks. Which have had the result of creating a glut of savings all looking for a suitable home. 

dllive

Thanks all.
Just to put it in context, this is the article I read which was the catalyst for this thread: https://www.financialthing.com/best-tracker-funds/
Do you agree with the author? (I know Im opening a can of worms asking that!  )

Thrugelmir

dllive said:

Thanks all.
Just to put it in context, this is the article I read which was the catalyst for this thread: https://www.financialthing.com/best-tracker-funds/
Do you agree with the author? (I know Im opening a can of worms asking that!  )

As an investor keep an open mind. Certainly don't become emotionally attached. If you want a good easy read and a book that you can dip in and out of. I'd recommend this

HARRIMAN'S NEW BOOK OF INVESTING RULES

The do’s and don’ts of the world’s best investors

Not cheap to buy but considering it runs to over 500 pages contains a wealth of information and ideas. From which you can pick and chose your own strategy. 

barnstar2077

If you still have twenty years to go until you need the money I would be equities 100%.

dllive

csgohan4 said:
...into income and Wealth preservation trusts. 

What are these? Can you give examples? Thanks

Apodemus

dllive said:

csgohan4 said:
...into income and Wealth preservation trusts. 

What are these? Can you give examples? Thanks

Wealth Preservation Trusts are investment trusts with their underlying investments weighted towards the cautious end of the scale and prioritising  preservation of the capital value, rather than aiming for growth or dividends.  Examples might include: Capital Gearing Trust (CGT); Personal Assets Trust (PNL); Ruffer Investment Company (RICA) etc.