The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Yesterday’s Damage? None to Bonds||Date: 5/7/2010 3:47 PM|
|Author: charliebonds||Number: 30779 of 35560|
I have limited experience in bonds, but it seems to me that bonds generally follow stocks but by smaller amounts. That is when stocks are down, bonds are down too but not by as much. Therefore I am delighted that in this downdraft on stocks, bonds are up.
As Dan shrewdly points out, bonds are not up. Some sub-classes of bonds are up, and some sub-classes haven't been as badly hurt as stocks. You need to dig deeper.
I know there are people that are panicking and feel that both BAC and GE are going down the tubes. Sorry, but that is nonsense. BAC is too big to fail and GE has yet to have even a negative quarter in earnings.
Make your case with evidence, not by assertion. Did ever ever hear of a company called Lehman? Did you ever hear it said, before they failed, that they were "too big to fail"?
As for GE, that is a piece-of-trash company --that happens to make excellent turbines-- but is irresponsible run and could go down just easily as any other company. Yes, internally, they are scrambling to unravel the accounting scams they've been running to report those good quarterly earnings. But those earnings aren't real. Again, you need to dig deeper, instead of just hoping the bets you made on GE will pay off. Maybe they will, maybe they won't. If markets turn really ugly, anything could happen.
|Copyright 1996-2015 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|