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Subject:  Re: Shorting Bonds Date:  10/30/2001  9:46 AM
Author:  Wradical Number:  2307 of 36398

I think playing short sales with bonds is way too risky.

When bond prices fall, it is due to rising interest rates. The key to making money in such a market is NOT to SELL SHORT, but to INVEST for the SHORT TERM.

In a short-term fund, or short-term positions, you will benefit from constantly reinvesting in higher-returning securities.

In contrast, holders of the long-term bonds will be losing principal due to the rising rates.
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