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Is now a good time to buy more Bonds?

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  • Linton
    Linton Posts: 18,154 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    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.
    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.
  • Albermarle
    Albermarle Posts: 27,864 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    edited 16 November 2023 at 7:08PM
    Pat38493 said:
    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

    In the last couple of days I received an e mail from Fidelity, and one from HL with info on the same subject.
    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.

    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.
    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. 
    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.
  • mr._prude
    mr._prude Posts: 169 Forumite
    Part of the Furniture 100 Posts Photogenic Name Dropper
    edited 16 November 2023 at 10:41PM
    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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