No. of Recommendations: 1
Hi All!

I've been around TMF for more than three years, but I don't know squat about bonds. On the premise that the only dumb question is the one that goes unasked, here's one for you:

If I'm willing to make a "bet" ( and let's face it, that's what it is! ) that interest rates on longer-term treasuries, etc, will go down over the next 2-5 years ( say from the mid/high-4%'s to the mid/low 3%'s ), what is the best way to make said bet ( i.e. highest return/lowest cost )?

Let's face it, a 1-point decline from 4.8 to 3.8 is a whole lot greater in impact that a 1-point decline from 7.8 to 6.8...thus my interest ( pardon the pun). ;-)

Should I be looking at certain bond funds, individual T-bonds or what?

Thanks much!
( who is almost totally ignorant about the interest rate betting alternatives, but who is willing to learn....and who understands that this is speculative in nature, and thus belongs in Murph's Mad Money portfolio, not the core portfolio ) ;-)

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.