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Is now a good time to buy more Bonds?
Comments
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Yes, corporate bond funds tend to behave similarly to equity with regard to crashes but dont have the benefits of exceptional optimism. So the only purpose I see is for income - it is a bit less risky than equity income since it can only be stopped if the issuing company goes out of business.JohnWinder said:Yes, that addresses the interest rate risk of bonds. It doesn’t consider the credit risk; with corporate bond funds one needs to think about credit risk, more so than with Treasury bonds. Bond funds have two principal risks, and sometimes inflation risk as well.0 -
Just had a quick check of funds available in one of my ex workplace pensions. A 15 +year gilt fund that dropped 50% ( !!) has gone up 5% in just the last few days. A 5 to 15 year one which dropped 25% has gone up by 2% in the last few days.Pat38493 said:
Tempting recommendations but when I see these type of recommendations, I often wonder if this means - yesterday would have been a great time to invest in this. Today not so much because everyone has just been told to rush in.Albermarle said:
In the last couple of days I received an e mail from Fidelity, and one from HL with info on the same subject.dealyboy said:Mail on Sunday today (12th Nov) ... Rosie Murray-West Wealth & Personal Finance ... "Three tricky years ... but now may be the time to invest in a bond bonanza".
You may be able to read this interesting article via msn and thisismoney ... https://www.msn.com/en-gb/money/other/now-may-be-the-time-to-invest-in-a-bond-bonanza/ar-AA1jLYuP?ocid=finance-verthp-feeds
The HL one was rather fluffy and would only say that it probably would not be a very bad time to buy gilts. However the one from Fidelity contained a strong buy recommendation for gilts from their main Investment Director Tom Stevenson, who normally seems to talk sense. Some quotes.
' Not trying to time the market is an article of faith but there are moments when the odds seem stacked in your favour.' ' It feels like for govt bonds we have reached that point' ' The dual case for government bonds - income and capital gain- is the most compelling right now ' ' If ever there was a moment to time the market it is now'
Strong stuff from a normally cautious guy.
Otherwise I think the thread went off track a bit as the original question was not will bonds you hold recover , but whether it is a good time to buy new ones today.1 -
This time last year I rebalanced from a 60/40 to 77/23 equity/bonds.Equity growth was 10.8% and bonds growth was 6%.Have just rebalanced again to 85/15 equity/bonds.
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