The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Bonds & Fixed Income Investments

URL:  http://boards.fool.com/i-think-playing-short-sales-with-bonds-is-way-too-16016178.aspx

Subject:  Re: Shorting Bonds Date:  10/30/2001  9:46 AM
Author:  Wradical Number:  2307 of 35365

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.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us