/biz/ - Business & Finance

>>56123546
The furthest out treasury at 5% is the two year as far as I can tell. Are you going into Corporate bonds?

>>56123546
Because 5% will likely not continue forever. Treasury bonds reflect inflation, so while you can protect your buying power with bonds, it isn't really generating buying power.
If you manage to invest in a longer term bond with a high return that then begins new issues at a lesser return, you could be generating some buying power, but over these longer time scales, you are very unlikely to beat the returns of the stock market.
So while it is a good way to minimize the current downside risks in other assets, holding bonds for the long haul is unlikely to be a significantly winning strategy.
But that's just like, my opinion, man.

>>56123618
No, honestly I haven't planned that far ahead yet.
I just mean 'bonds' in general...
after getting my ass handed to me in crypto and some stocks

>>56123618
I did read though that you can get 30-year PAYPAL bonds at 5.6%.
Maybe that is a good route????

>>56123659
Maybe. I think you are going to have to lean on a investment like that in the long term anyway if the treasury yields don't rise too much further.

Just remember, you can lose money on bonds if you sell them and their yield has risen. Likewise, you can make a lot of money selling them if the opposite is true.

>>56123705
>you can lose money on bonds if you sell them and their yield has risen.
Why would that make you actually lose money?
Or do you just mean losing at opportunity cost of having been able to make a greater amount of money if I'd held rather than sold?
I am still in the infant stage of learning about bonds.

>>56123864
the yield calculation includes a bonds market price.
I basically am saying that a bond's market price is not static and will go up and down. So you can still lose if you sell before maturity.

>>56123546
I bought gold in 2018 for £1000 p/oz

It's now £1550 p/oz in 2023

If you're happy with modest gains, it's the risk-free choice that outperforms bonds.

And with the way things are going (potential chaos on the horizon) it's really a no-brainer considering there is zero counterparty risk.

>>56123897
Thanks.
I thought that a bond was only a guaranteed return of the percentage they advertise.
So then, as long as you wait until maturity, you will still get that guaranteed return?

>>56123919
Thank you. And nice picture, lol.

I'm in a money market fund paying 4.5%. I find that being completely liquid is the best roi.

>>56124245
>money market fund paying 4.5%
Is there a great risk to this?

>>56123546
Because it's going to zero next decade.
There is counterparty risk in bonds, and the US isn't lasting as it is now, through the current way the US dollar works

>>56123546

You will learn eventually OP.

You will learn...