UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next
Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35339  
Subject: Re: Where are rates going? Date: 8/18/2001 2:32 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I'm referring to research done at Vanguard and other places saying that active management of bond mutual funds does not add value (references available on request; I'd have to dig it up). You'd think that it would since it should be possible to do research to predict which bonds are likelier to default than the market thinks. But most bond mutual funds make the wrong interest rate bets time and time again.

There are not two instances of interest rate possibilities, but three. Rates can go up, go down, or stay the same at any point along the yield curve. If you guess rates are going up, there are two ways you could be wrong: they could go down, or they could stay the same. That's what I was referring to with my original reply.

But I agree 100% with your advice. It's essential to have a plan for what to do if your predictions don't pan out.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (15) | Ignore Thread Prev | Next

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement