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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35363  
Subject: Re: Shorting Bonds Date: 10/30/2001 9:46 AM
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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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